– An investigation on behalf of investors of the Student Loan Corp. (NYSE:STU) over potential breaches of fiduciary duty by the STU board of directors in connection with the proposed takeover of the Student Loan Corp. (NYSE:STU) by Discover Financial Services was announced.
If you are an investor in The Student Loan Corp. (NYSE:STU) stock, and/or have information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 1554.
The investigation by a law firm concerns whether The Student Loan Corp. and its Board breached their fiduciary duties owed to STU investors in connection with the proposed takeover.
On Friday, September 17, 2010, The Student Loan Corporation (NYSE:STU), announced that The Student Loan Corporation and Discover Financial Services have entered into an agreement for Discover Financial Services to acquire The Student Loan Corporation, and thereby become the owner of its private student loan business as well as $4 billon of its private student loans.
Under the terms of the agreement shareholders of Student Loan Corporation will receive $30 per STU share they hold. Separately and immediately prior to the transaction, SLM Corporation will acquire from Student Loan Corp $28 billion of securitized federal student loans and related assets and Citibank will acquire from Student Loan Corporation certain federal and private student loans and other assets totaling $8.7 billion. The transaction has been approved by the SLC Board of Directors.
But the investigation by a law firm concerns whether the proposed price is unfair to the shareholders of The Student Loan Corp. (NYSE:STU). Even though shares of The Student Loan Corp. (NYSE:STU) traded the day before the announcement at $21.20 per share and STU shares jumped to $29.86 per share or by over 40% after the news, STU shares traded as recently as May as high as $29.69 per share, during April as high as $37.14 per share, in March over $37.50 per share, and in February as high as over $44 per share. Thus well above the current price offered. During 2009 STU shares traded several months at even over $50 per share, in 2008 as high as $135.26 per share, during 2007 over $200 per share, and in 2006 at almost $240 per share.
In addition investigation concerns also whether the Student Loan Corp. Board of Directors breached their fiduciary duties to The Student Loan Corp. (Public, NYSE:STU) stockholders by failing to adequately shop The Student Loan Corp. before entering into the transaction.
Those who are investors in The Student Loan Corp. (Public, NYSE:STU) stock, and/or have information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 1554.
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