Student-loan provider First Marblehead Corp's largest shareholder, Leslie Alexander, bought an additional 200,585 shares in the company, as disclosed in a filing with the U.S. Securities and Exchange Commission.
Alexander, the owner of NBA's Houston Rockets, and a previous director, now owns 15.2 million shares directly and another 3.2 million shares indirectly after his November 21 purchase, the company said in the filing.
Shares of the Boston-based lender leaped as much as 64 percent in morning trade helped by the share purchase and a decision by the U.S. government to back $200 billion in consumer debt, including student and auto loans.
After the recent purchase, Alexander directly owns 15 percent of the student finance company. First Marblehead (nyse: FMD - news - people ) has slumped more than 90 percent this year, hit hard by student loan losses and a frozen asset-backed securities market.
Shares of the company were up 40 cents at $1.25 in mid-day trade on the New York Stock Exchange.
Source:
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