Monday, March 24, 2008

Mo Money

Bear is hungry.

LONDON - With angry shareholders threatening to block what they see as a piddling bid for Bear Stearns by JP Morgan, it's perhaps not surprising that the buyer would attempt to placate them by quintupling its offer.


Bear was reportedly seeking to authorize the sale of a 39.5% stake on Sunday night, which under Delaware law can be done without shareholder approval. Both Bear Stearns and JPMorgan Chase are incorporated in Delaware.

I don't know know enough about what either company is/was sitting on to really know what's going on, but we do know that the Fed/Treasury said ok to this deal based on the idea that by essentially wiping Bear's shareholders out, it wasn't in any sense a "bailout" of the company. They weren't rewarding bad behavior (though whether they were rewarding JPMorgan for bad behavior is another question).

...more here.