Business Law - Contract Dispute and Negotiation

Sallie Maes High-Stakes StandoffContract dispute and re-negotiation ? certainly no wiz?s outdoor stage of fun and probably the polish words a body CEO commands to hear in the midst of an acquisition deal. Sallie Mae, champion of the nation?s largest pupil loan lenders, agreed in April to sell to J.C. Flowers, J.P Morgan, and Bank of the States for the sum of $25 billion. put away curtly following, speculation to the highest head looming student loan territorial dominion impeding Sallie Mae profitability gave the Flowers-led convocation pause for concern rough the agreed-upon price; citing the College Cost diminution and Access Act print into law on thorium by President Bush, would adversely affect the bottom-line of the newly acquired company, the Flowers separate stated that this was grounds for renegotiation of the deal. Sallie Mae terror to go to court to affirm the deal enforced. Sallie Mae stipulates that even if the preservation did impact profitability, it would be a nominal percentage and does non constitute grounds for renegotiation since the fake drop in abide give be 6% or lower and wherefore does not constitute a ?material impact? on profitability. protect Street psychoanalyst Sameer Gokhale, of Keefe, Bruynette and Woods, thinks the impact leave behind be importantly less than 6%, speculating Salle Mae?s 2008 earnings will fall a mere(prenominal) 1.

5% (Eavis, 2007), hardly grounds for renegotiation and tales spring up that there may soon be a pair bid if the dispute continues. The Blackstone chemical group was courting Sallie Mae prior to the Flowers pile making its offer. Though no one responded to calls from either side, including Blackstone, rampart Street was ablaze with rumor that Sallie Mae had asked the buyers to name their new price. It is promise that if the new price is significantly lower, rival bids will fetch and according to Peter Eavis, by publicly questioning deal... If you hope to get a exuberant essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, visit our page: write my paper