Angry Shareholders Want More for Bear Stearns

Bargain basement $2 price sets up potential battle, lawsuits
By Jim O'Neill,  Newser Staff
Posted Mar 19, 2008 7:19 AM CDT
Angry Shareholders Want More for Bear Stearns
Graphic shows daily trading and timeline of events for Bear Stearns since June 2007.   (AP Photo)

Bear Stearns shareholders are threatening to vote against its sale to JPMorgan, saying the $2 price per share for the nation’s fifth largest investment bank is unrealistic; speculators seem to agree, trading up Bear stock to $5.91 yesterday, a 23% bump. Expect some serious brinkmanship to force a higher offer or lure another bid, reports the Wall Street Journal.

Winning over the largest shareholders could be tough, Bloomberg adds, because the top 20 own an unusually high 65% of shares. Analysts say some movement is possible—though one notes that JPMorgan CEO Jamie Dimon "is a very tough guy. There may ultimately be a huge confrontation here." Another white-knight buyer who might ride to Bear’s rescue is less likely, as it wouldn’t have the Fed’s support.  (More Bear Stearns stories.)

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