JPMorgan in Negotiations to Raise Bear Stearns Bid

[smwinc 20]

JPMorgan in Negotiations to Raise Bear Stearns Bid

 

"JPMorgan Chase was in talks on Sunday night for a deal that would quintuple its offer for Bear Stearns, the beleaguered investment bank, in an effort to pacify angry Bear shareholders, according to people involved in the negotiations."

 

http://www.nytimes.com/2008/03/24/business/24deal.html?_r=1&oref=slogin

[james_gsx 16]

Not sure why they did this, considering the risks JPM carries in buying BSC. The only real reason they bought BSC was too prevent a complete market collapse. Theres a good article in the Economist about the current crisis and it has good information about the BSC and JPM acquisition, pretty scary to think about what would have happened if no one came in to buy BSC.

 

I guess they made a higher bid to please a few of the pissed off billionaire shareholders.

[Sparrow 10]

After reading about BSC again I was wondering why did the FED loan JPMorgan 29 billion and not BSC itself? JPMorgan picks up 1B of the tab but the acquisition wasn't necessary at all.

[johnnycakes78704 10]

james_gsx, is there a link to that article?