Laureate Education's third-largest shareholder will not support proposed management buyout

By Lisa Kerner

Charlotte, N.C., Feb. 21 - A group of Laureate Education, Inc. shareholders led by Select Equity Group, Inc. said it has "significant reservations" regarding the proposed management buyout of the company for $60.50 per share.

Select Equity Group and its affiliates Laureate Education's third-largest shareholders, owning more than 3.6 million shares of common stock, or 7.14%, according to a schedule 13D filing with the Securities and Exchange Commission.

In a letter to independent members of the company's board, Select Equity Group said "This offer is grossly inadequate and the process by which the deal was proposed and evaluated was flawed by clear conflicts of interest."

If the terms of the merger agreement are not amended to better reflect the true value of the company, Select Equity Group will not support the transaction, the filing stated.

Baltimore-based Laureate Education provides higher education to students through a global network of campus-based and online universities.

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