JPMorgan agreed to quadruple its offer for Bear Stearns in an effort to overcome opposition from the shareholders of the crippled securities firm – Bloomberg reports.
According to a Bear Stearns statement, shareholders will receive 0.21753 JPMorgan shares for each Bear Stearns share they hold. That values Bear Stearns shares at about $10 each. Under the terms of the deal the two firms struck March 16, the takeover price had been $2.52, based on last week’s closing price.
Bear Stearns surged almost 70 percent in early trading in New York after the New York Times reported the pending offer. The new terms value Bear Stearns at about $2 billion. JPMorgan Chief Executive Officer Jamie Dimon needs a majority of Bear Stearns shareholders to approve the deal and has been wooing its employees with cash payments.
Bear Stearns rose $3.98 to $9.94 at 9:30 a.m. in New York before the shares were suspended from trading pending the announcement.
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6 Responses
isn’t this good news?
The deal is definitely going to be approved by the shareholders, as Bear just sold (w/o shareholder approval) 39% stake of Bear to JP Morgan.
This is good news for Bear employees (there are a lot of frum employees), as they would get nothing if Bear declared bankruptcy. Now they have a 50/50 chance of either getting hired by JP Morgan or getting a generous severance package.
Great just my mazal.. I was going to buy a few thousand shares at 2.80 in a speculation bid thinking it could only go up.. but I skipped out..
#3 Maybe because they were so charitable to the Jewish community. Shalach lahmecha…
does anyone know stocks to advise to buy now?im thinking its backed by feds & jp morgan is so aggressive to buy.it sounds under valued?
this is a big scam. the executives at bear stearns offered $15 a share, but the fed reserve of ny said we want jp/chase to have it, so it was done at $2-$10.
a BIG scam.
luckily, not a yiddishe issue (yet)