Sallie Mae to wait for takeover trial

SLM Corp., the top U.S. student-loan provider, will wait until at least July 14 for a trial over whether it should get a $900-million break-up fee from a group led by buyout firm J.C. Flowers & Co. after a takeover deal failed.

Delaware Chancery Court Judge Leo Strine Jr. said Monday that the trial could be postponed further if SLM, known as Sallie Mae, pushes for a pretrial ruling on the interpretation of the buyout contract.

Sallie Mae sued the investment group, including JPMorgan Chase & Co. and Bank of America Corp., on Oct. 8 in Delaware after they sought to rescind their $60-a-share April buyout offer, citing adverse financial developments.

The prospective buyers asked Strine to put off the trial for one year, saying the exchange of documents and witness depositions could take time. Sallie Mae had sought a February trial.

Sallie Mae said it had been hurt by the uncertainty surrounding the litigation and needed a quick trial date to defend its financial reputation.