This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Monday's Winners & Losers: Sallie Mae

Updated from 11:49 a.m. EDT

Shares of Sallie Mae (SLM) were among the NYSE's winners Monday, jumping 18.4% after the student loan lender agreed to be acquired by an investor group led by J.C. Flowers & Co. for about $25 billion, or $60 a share.

The price represents a 28% premium to Sallie Mae's closing price of $46.76 on Friday. "We are pleased to invest in Sallie Mae and help provide increased liquidity, stability and financial strength," J.C. Flowers said. When the deal closes, J.C. Flowers and Friedman Fleischer & Lowe will invest about $4.4 billion and own 50.2% of the company. Bank of America and JPMorgan Chase, meanwhile, will each invest $2.2 billion and will each own 24.9% of the company. The acquisition is expected to close in late 2007. Shares of Sallie Mae closed up $8.59 to $55.35.

Fremont General (FMT) soared 26% after the mortgage lender agreed to sell about $2.9 billion of its subprime residential real estate loans to an unnamed buyer. The company has also entered into exclusive negotiations with the same buyer to sell most of its residential real estate business and assets.

The $2.9 billion represents the bulk of Fremont's subprime residential loans held for sale that have not been sold yet. The sale is expected to result in a pretax loss of about $100 million. Shares were up $1.83 to $8.88.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ETN $70.42 -0.81%
GWW $241.28 0.87%
POWL $34.39 -0.61%
SLM $9.56 1.00%
AAPL $129.36 0.21%


DOW 18,198.72 -89.91 -0.49%
S&P 500 2,106.94 -10.45 -0.49%
NASDAQ 4,978.3270 -29.7690 -0.59%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs