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Sallie Mae Buyers Offer to End Agreement

The consortium that agreed to buy student lender Sallie Maefor $25 billion said 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 and Friedman Fleischer and Lowe and major banks JP Morgan Chase and Bank of America.