Wall Street Addict

JPMorgan Chase & Co.'s higher offer for Bear Stearns on Monday gave the investment bank control of nearly 40 percent of its ailing rival, blunting the threat that angry shareholders could scuttle the deal.
The $2.4 billion lifeline to rescue the investment house stands a strong chance of success -- assuaging investors unhappy with a $2 per share offer by upping it to $10 apiece. JPMorgan has faced an outcry among Bear Stearns shareholders about the lowball offer, and faced the possibility that rival deals would begin to surface.
Most analysts said a higher bid was unlikely, but some bondholders have reportedly been buying the stock in order to ensure their right to vote for a deal and prevent a bankruptcy that would wipe them out. Bear Stearns' shares -- which hit $160 last year and still traded near $80 earlier in the month -- nearly doubled to $11.25 on Monday.

Labels: Bear Sterns, BSC, JP Morgan Chase And Co., JPM