Thursday, March 20, 2008

Sky News: Bear Sterns sale - SAVAGE LOSSS

Bear Sterns sale
Updated: 06:45, Friday March 21, 2008

Business Week In Review: US investment bank Bear Stearns has been sold to its rival, JP Morgan Chase, in a deal worth US$236 million.

Bear Stearns required emergency financing from the Federal Reserve and JP Morgan last week in order to stay afloat.

The scrip deal, in which JP Morgan offered a little over 0.05 of its shares for one Bear share, implies an offer price of around US$2 for each Bear Stearns share.

To put that in perspective, the company was selling for US$170 a share just last year.

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