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JPMorgan to buy Bear

By Mark H. Astarita, Esq.

We all knew this was coming. JPMorgan is going to buy Bear Stearns. The real shock is the price - JPMorgan is paying just $2 a share for Bear, or a total of $236 million.That per-share payout is just one-fifteenth of Bear's stock price on Friday and miles off its record share price of $172.61 last year. According to the Reuters, that means Bear's shareholders, including British billionaire Joseph Lewis and Bear Stearns' Chairman Jimmy Cayne, will have their holdings wiped out by the deal.Reuters quotes Emanuel Weintraub, managing director of Integre Advisors, a New York-based money management firm, with an important observation - "It's scary for what it says about the value of financial assets, if a company is worth only a small percentage of book value...continue to full post

Full post as published by SECLaw.com on March 17, 2008 (boomark / email).