"Judges traditionally have been skeptical of buyers’ efforts to walk away from acquisitions by arguing that economic or regulatory conditions have changed so much that deals should be terminated, several lawyers who specialize in mergers and acquisitions and corporate litigation said." So says the LA Times.
JC Flowers and its bankers JP Morgan (JPM) and Bank of American (BAC) may have gotten more than they bargained for when they walked away from a buy-out deal with Sallie Mae (SLM). A history of similar cases tried before the Delaware Chancery Court where this action will be heard, indicates that the odds are in SLM’s favor. It want Flowers to complete the acquisition or pay a $900 million break-up fee.
Mr. Flowers better get out his check book.
Douglas A. McIntyre