JP Morgan raises Bear Stearns bid
Published March 24th, 2008
JP Morgan Chase has raised its offer for Bear Stearns to $10 a share, from the original offer of $2 a share.
Under the deal, JP Morgan Chase is also buying 95 million newly issued Bear Stearns shares, or 39.5% of the bank.
The initial offer angered many Bear shareholders who thought the company was being sold at a bargain price.
Including the new shares, the latest offer values Bear Stearns at around $2.1bn, still a fraction of its value before the near collapse 10 days ago.
Purchasing the extra shares puts JP Morgan Chase in a much stronger position to push through the takeover.
Bear Stearns shares doubled after the announcement to $11.80, JP Morgan Chase was up more than 2.5% at $47.16.
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