The consortium that agreed to buy student lender Sallie Mae for $25 billion said on Monday it has offered to terminate their agreement.
The consortium released a letter sent to vice chancellor Leo E. Strine, Jr. of Delaware Chancery Court offering to terminate the $60-a-share leveraged buyout. Sallie Mae shares traded down about 3 percent at $46.91.
The group said its move was in response to a letter that Sallie Mae sent to the court on Friday asking for an expedited trial.
Sallie Mae has filed a lawsuit seeking a breakup fee of $900 million from the consortium of private equity firms J.C. Flowers & Co and Friedman Fleischer and Lowe and major banks JP Morgan Chase & Co and Bank of America Corp.