Who's Courting Sallie Mae?

Government owned, then publicly traded ... and now privately held? Shares in Sallie Mae have made their largest leap in 22 years, and all before breakfast.

After jumping in European markets, the stock soared by 15 percent, or $6.01, to close at $46.76 on Friday in reaction to news that a $20 billion takeover bid might be in the works. Who's the secret admirer? The Wall Street Journal cites unnamed sources speculating that at least two suitors are in talks: Blackstone Group, and a consortium consisting of JC Flowers & Co., and J.P. Morgan Chase. The sources put the odds of a successful sale at 50/50.

The share spike is an unexpected boon to the nation's largest college-loan provider, currently valued at $16.7 billion -- news of the takeover offer comes on the heels of a weak fourth quarter for Sallie Mae, as well as state and federal scrutiny of possibly deceptive loans practices.

If a bid materializes, it will be a sign of just how bold private equity firms have become in stalking ever more challenging pray. Potential suitors will be figuring out how they can pile debt on top of a financial services company like Sallie Mae, as well as navigating the obstacles created by the federally subsidized loans in its portfolio.

by Liz Gunnison