The M & A Researcher submits: SLM Corporation (SLM) shareholders have approved its merger with JC Flowers.

Unfortunately, SLM is offering no guidance on timing for the deal, or the various issues regarding J.C. Flowers currently ambivalence towards maintaining the merger agreement.

There is considerable speculation that the terms of the deal may be re-negotiated to reflect SLM’s recent stock price decline, however there has been no legitimate source as of yet to indicate that this speculation is valid.

To this point, it does not appear that SLM would entertain a re-negotiation downward, as it’s posture is clearly one of confidence regarding its legal standing under the merger agreement with respect to potential federal legislation. As discussed previously, the circumstances that have surfaced over the last month were well known to both parties, and therefore J.C. Flowers would seem to have very little traction to fight this in court. Even if the firm could ultimately prevail, the effort itself would presumably be a deterrent to litigation.

Obviously, this deal is by no means certain at this point. The general impression is that SLM will move forward as if the transaction is moving towards completion and essentially dare J.C. Flowers to contest the current terms and merger agreement. While a reduction of the $60/share price is certainly a possibility in the near future, at this time it does not seem probable.

Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.

originaly from source