JPMorgan Raises Bear Purchase Price

NEW YORK -- JPMorgan Chase & Co. on Monday increased its offer to acquire Bear Stearns & Co. to $10 per share from the bargain-basement price of $2 per share, The Associated Press reported.

There was a backlash last week among Bear Stearns shareholders who felt the original deal undervalued the 85-year-old institution. JPMorgan Chase Chief Executive Jamie Dimon spent most of the week trying to woo Bear Stearns employees, who collectively own about a third of the company, the AP reported.

The new deal values Bear Stearns at about $1.19 billion, and includes a provision for JPMorgan to buy 95 million new Bear Stearns shares immediately, which gives it a 39.5 percent stake in Bear before shareholders have even voted, the AP reported.

-- NYSSCPA.org News Staff

Posted on 3/24/08