Navient rejects 3.2 billion dollar bid from Canyon Capital and Platinum Equity

George Hicks

Navient, the very own popular firm of United States that provides loans to students has rejected a 3.2 billion dollar takeover bid from two investors as it believes the offer undervalues the company. On Monday the board members of Navient has rejected the 12.50 dollar per share offer from the hedge fund canyon capital advisors and private equity firm platinum equity advisors

After the closing price of Navient which is of 11.73 dollars per share. The offer represents a 6.6 percent premium over Navient. The chairman of Navient, William Diefenderfer has said that the 12.50 dollar price per share offer was surprisingly lower than the 14 to 15 dollar informal price range as the advisers of Canyon. The Wilmington, Delaware-based company recently ran into trouble with regulators over its business practices.

The company was accused by the United States Consumer Financial Protection Bureau of cheating hundreds of thousands of borrowers out of loan relief, telling a federal court the bureau did not identify even one such borrower. Navient said that it would consider any proposal in the future if it reflected the fair value of the company.

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