Student Loan Investors Fight $600M Discover Buyout

Law360, New York (September 21, 2010, 6:09 PM EDT) -- A Student Loan Corp. shareholder has filed a putative class action claiming that majority owner Citigroup Inc.'s $600 million sale of the company to Discover Financial Services shortchanged minority shareholders by valuing shares at less than half SLC's book value.

Shareholder Alan R. Kahn argued in a suit filed Monday in the Delaware Chancery Court that Citigroup put its own needs to downsize and raise money ahead of the needs of SLC's minority shareholders, who own about 4 million shares of common stock.

“The underpriced buyout...
To view the full article, register now.