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Sallie Mae claims buyers to back out of deal

September 26, 2007
Student loan giant Sallie Mae, which employs 2,300 workers in Fishers and another 500 in Muncie, said today that the private-equity buyers who offered to buy it for $25 billion want to back out of terms of the agreement.

Earlier this month, Virginia-based Sallie Mae warned the investors to follow through with the deal. The consortium includes J.C. Flowers, J.P. Morgan Chase & Co. and Bank of America.

Buyers have gotten cold feet lately as financing tightens, and the economy slows due to the collapse of the subprime mortgage market.
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