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JPMorgan Boosts Bear Stearns Offer to $10/Share  

Posted Mar 24, 08 9:38 AM CDT in Business    Most Covered

(newser) – JPMorgan will quintuple its takeover offer for Bear Stearns, setting a new $10-per-share price today after a weekend of tense renegotiations. Bear shareholders had objected to the proposed $2 deal, saying the bank-saving bid was a heist. JPMorgan is also buying 95 million more shares of the bank, which will give it 39.5% ownership and improved odds of getting the deal accepted, the Wall Street Journal reports.

The role of the Fed, which guaranteed the week-old deal, has also changed; now JPMorgan will bear the first $1 billion of potential losses in financing for Bear's most problematic assets, and the Fed will be responsible for the other $29 million. Shares of Bear have consistently traded well above $2 as investors anticipated the sweetened deal. JPMorgan stock has likewise skyrocketed since the news broke.

Source Wall Street Journal

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JPMorgan Boosts Bear Stearns Offer to $10/Share
Graphic shows Bear Stearns Cos. daily trading from March 10 to March 18.   (AP Photo)
JPMorgan Boosts Bear Stearns Offer to $10/Share
A sign of above the entrance to Bear Stearns headquarters is seen in New York Tuesday, Jan. 8, 2008.   (AP Photo/Jin Lee)
JPMorgan Boosts Bear Stearns Offer to $10/Share
Holiday lights from a Christmas tree highlight the Bear Stearns Company sign at its headquarters in New York, in this Dec. 15, 2005 file photo.   (AP Photo/Bebeto Matthews, file)
JPMorgan Boosts Bear Stearns Offer to $10/Share
The logo for Bear Stearns is shown at its corporate headquarters in New York, in this July 18, 2007 file photo.   (AP Photo/Mark Lennihan, file)
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