Citigroup's Student Loan Corp. Is Said to Be Near a Sale for $600 Million
Citigroup Inc. is nearing a sale of its Student Loan Corp. business to Sallie Mae and Discover Financial Services in a deal that values the company at about $600 million, two people familiar with the matter said.
Student Loan Corp.’s board is meeting this morning to consider the sale of the Stamford, Connecticut-based company at $30 a share, the people said, or about 40 percent higher than the closing price yesterday on the New York Stock Exchange.
The deal may be announced before the stock market opens, said the people, who asked not to be named because the talks are private. The boards of Sallie Mae and Discover are also meeting to vote on the deal, the people said.
Under the terms being considered, Sallie Mae would take over some of the loans from Student Loan Corp. while Discover would purchase and run the ongoing business, the people said. Citigroup will keep some assets not included as part of the proposed transaction, the people said.
Mark Rodgers, a Citigroup spokesman, didn’t return a call seeking comment. Jon Drummond, a spokesman for Discover, declined to comment.
The New York Post reported the negotiations earlier today.
To contact the reporters on this story: Jeffrey McCracken in New York at jmccracken3@bloomberg.net; Zachary Mider in New York at zmider1@bloomberg.net
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