JPM Raises Bear Bid to $10
I wrote a short note on Bear yesterday suggesting longs sell at the then price of $6. Before shares opened today, JPM raised the bid to $10. Shares immediately rose above that offer and now trade above $12.
This increase was delayed by the Federal Reserve balking at the perception of a bailout. Duhhhhhhhhhh!
This is news is crazy on many levels, but oh well. I guess I should bone up on my Marxism if this is how its going to be going forward.
Tell me your thoughts on this latest news.
Comments (2)
The way I understand it as of 5 am this morning (I have not looked back yet to see if there was more news) was that there was a mistaken provision in the merger agreement that would force JPMorgan to absorb losses at Bear even if the share holders rejected the offer and the merger did not take place. It is still not a done deal and JPMorgan is trying to secure enough votes to make sure the shareholders pass the merger by raising the price.
You had to wonder who knew what when the shares were trading well about the $2 tender offer. Someone must have actually read the contract. It may go higher or it may not pass the vote. Hold on to your seats.
My understanding is the Fed does NOT want this to go up to $10 as it will look like an investor bailout and not a banking system rescue measure.
Uncle John
Posted by Uncle_John | March 24, 2008 2:26 PM
ah, you had the 'sisu' to make an opinion on it. get some right, get some wrong.
Posted by ahknaten | March 24, 2008 10:53 PM