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Bear Stearns Jumps on Hope for Higher JPMorgan Bid  

Posted Mar 18, 08 5:03 PM CDT in Business    Most Covered

(newser) – Bear Stearns shares jumped 23% today on hopes that stockholders will reject JPMorgan's bailout offer in favor of a higher offer, Bloomberg reports. The surge moved the price to nearly three times the current value of the fire-sale bid, which one major stockholder termed "derisory." "There's every incentive for shareholders to vote 'no' the first time," said one analyst.

Investors think "Bear Stearns can survive on its own, JPMorgan will have to up the price, or that another bidder is about to emerge," said one expert. But not so fast, caution others: JPMorgan won't budge, they say, and Bear Stearns stockholders "will have no choice but to accept." Regardless, the stock should be getting snapped up as bondholders try to seal the deal and shareholders expand their holdings to vote nay.

Source Bloomberg

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Bear Stearns Jumps on Hope for Higher JPMorgan Bid
An employee enters Bear Stearns on Monday, March 17, 2008 in New York.   (AP Photo/Mark Lennihan)
Bear Stearns Jumps on Hope for Higher JPMorgan Bid
Steven Raphael, a Bear Stearns broker, enters company headquarters on Monday, March 17, 2008, in New York. JP Morgan Chase said Sunday it will acquire Bear Stearns for $236.2 million or $2 a share.   (AP Photo/Mark Lennihan)
Bear Stearns Jumps on Hope for Higher JPMorgan Bid
A sign of above the entrance to Bear Stearns headquarters is seen in New York Tuesday, Jan. 8, 2008. Shares of Bear Stearns & Co. rose in premarket trading amid reports Chief Executive James Cayne is...   (AP Photo/Jin Lee)
Bear Stearns Jumps on Hope for Higher JPMorgan Bid
The headquarters for JP Morgan Chase, right, and Bear Stearns, left, are shown on Monday, March 17, 2008 in New York.   (AP Photo/Mark Lennihan)
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