JPMorgan raises Bear Stearns bid to $10 a share
JPMorgan Chase & Co has raised its all-stock offer for Bear Stearns Cos to about $10 a share, roughly five times its original bid, and struck a deal to buy nearly 40 percent of the bank, all but locking up the acquisition.
By Agencies |
JPMorgan Chase & Co has raised its all-stock offer for Bear Stearns Cos to about $10 a share, roughly five times its original bid, and struck a deal to buy nearly 40 percent of the bank, all but locking up the acquisition.
Under the revised deal, JPMorgan will be allowed to buy 95 million newly issued Bear Stearns shares and Bear's board agreed to vote in favor of the offer, which has financial backing from the Federal Reserve. The offer valued Bear at about $2.1 billion, compared with $236 million under the original deal.
The agreement, however, is likely to raise concerns that the U.S. government is prepared to help rescue a failing Wall Street bank while declining to bail out millions of home owners facing the possibility of foreclosure.
Under the revised deal, JPMorgan will be allowed to buy 95 million newly issued Bear Stearns shares and Bear's board agreed to vote in favor of the offer, which has financial backing from the Federal Reserve. The offer valued Bear at about $2.1 billion, compared with $236 million under the original deal.
The agreement, however, is likely to raise concerns that the U.S. government is prepared to help rescue a failing Wall Street bank while declining to bail out millions of home owners facing the possibility of foreclosure.
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