Bear Stearns shareholders are threatening to vote against its sale to JPMorgan, saying the $2 price per share for the nation’s fifth largest investment bank is unrealistic; speculators seem to agree, trading up Bear stock to $5.91 yesterday, a 23% bump. Expect some serious brinkmanship to force a higher offer or lure another bid, reports the Wall Street Journal.
Winning over the largest shareholders could be tough, Bloomberg adds, because the top 20 own an unusually high 65% of shares. Analysts say some movement is possible—though one notes that JPMorgan CEO Jamie Dimon "is a very tough guy. There may ultimately be a huge confrontation here." Another white-knight buyer who might ride to Bear’s rescue is less likely, as it wouldn’t have the Fed’s support.