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Tripp Levy PLLC Investigates Buyout of The Student Loan Corporation

^{Published on 2010-09-17 08:41:49 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Tripp Levy PLLC, a leading national securities firm, announces an investigation into the proposed acquisition of The Student Loan Corporation (NYSE: STU). On September 17, Discover Financial Services (NYSE:DFS) announced that it has reached an agreement to acquire The Student Loan Corporation (aSLCa) for $600 million, or $30 per share. Separately and immediately prior to the closing of Discovera™s transaction, SLC will sell $28 billion of assets to Sallie Mae and $9 billion of assets to Citibank. Discover will acquire $4.2 billion of private student loans and related assets at an 8.5% discount, along with $3.4 billion of SLCa™s existing asset-backed securitization debt funding. The amount to be paid by Discover for the private student loan assets is subject to a post-closing purchase price adjustment between Discover and Citibank, which owns 80% of SLCa™s outstanding common stock.

The investigation concerns, among other things, whether the consideration to be paid to SLC shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of SLC. Indeed, SLCa™s book value alone is over $65 per share. The investigation further concerns whether Citigroup, as the controlling shareholder of the company, as well as the board of directors of SLC may have breached their fiduciary duties by not acting in SLC shareholders' best interests in connection with the sale process of Playboy.

If you own SLC common stock and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact

Tripp Levy
Tripp Levy PLLC
125 East 82^nd Street
9^th Floor
New York, New York
Toll Free: 877-772-3975
Email: [ contact@tripplevy.com ]

Tripp Levy PLLC is a national law firm that specializes in mergers & acquisitions, takeover litigation, shareholder rights, and corporate governance matters in state and federal courts throughout the United States.

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