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.