RESTON, Va. – Shareholders of student loan giant Sallie Mae overwhelmingly approved the $25 billion takeover of the company by a group of private equity firms and banks, but investor doubts continue on whether the deal will be consummated amid the growing crisis in the debt markets. Shares in the student lender continued to trade approximately 25% under the $60-a-share offer, reflecting buyer remorse over proposed cuts in federal aid to students. The buyers: J.C. Flowers & Co., Friedman Fleischer & Lowe, Bank of America and JP Morgan Chase, have notified Sallie Mae the proposed cuts could create a "material adverse impact" on the deal, allowing them to back out without paying the agreed-upon $900 million break-up fee.
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