Sallie Mae Holders Furious At Flowers

Hedge fund managers can be such a sensitive, caring lot. From Friday’s New York Post:

Risk-taking hedge funds that invested in Sallie Mae (SLM) are furious at billionaire J. Christopher Flowers for threatening to pull out of his $25 billion takeover of the nation's largest student loan provider - a move that has already sent the stock into a tailspin. . . .

They also claim Flowers' hardball tactics could hurt his reputation as a respected dealmaker, although some bankers disputed that.

"If you have a merger agreement with someone and you threaten to breach it for no reason, why would anyone deal with you again?" asked one large Sallie Mae holder.

Right. Of course. They’re worried for Flowers about his reputation. That’s all it is. . . .

SLM 1-yr chart