NEW YORK (Reuters) - Two Sallie Mae SLM.N shareholders have indicated they stand behind the company in its effort to block a cut in the takeover price agreed to in April, the New York Post reported on its Web site on Friday.
According to the report, institutional money manager Barrow, Hanley, Mewhinney & Strauss, Sallie’s largest holder with an 8 percent stake, said on Thursday it stands by the company’s decision to insist completion of the $60-a-share deal.
“It makes no sense to us for the price to be renegotiated,” the Post quoted Mark Giambrone of Barrow, Hanley as saying.
Capital Guardian Trust Co, which owns 3.5 percent of Sallie’s shares, is also siding with Sallie Mae, the report said.
The consortium that agreed to acquire Sallie Mae said on Tuesday it sent a revised proposal to the student lender offering to pay $50 a share in cash plus warrants that could result in an extra payout. Sallie Mae responded by saying it expects the buyers to honor their original contract.
The consortium of private equity firms J.C. Flowers & Co and Friedman Fleischer and Lowe and major banks JP Morgan Chase & Co JPM.N and Bank of America Corp BAC.N agreed in April to pay $25 billion for Sallie Mae.
Investment firm QVT Financial LP, which said it manages accounts that hold about 1.4 million shares, also has written to Sallie Mae supporting the company’s stance in holding out.
Sallie Mae and Barrow, Hanley were not immediately available for comment. A Capital Guardian spokesman declined to comment.
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