JPMorgan Chase has increased its offer for Bear Stearns five-fold to deter any third party bidders and appease shareholders.
The revised deal now values every Bear share at $10 each, up from the original $2 announced over a week ago. In addition, JPMorgan Chase will purchase 95m newly issued shares of Bear Stearns common stock at the same $10 per share price. It means Bear Stearns is now valued at approximately $2.1bn; much higher than the previous $236m valuation. The Bear Stearns board has indicated it intends to vote in favour of the deal. JPMorgan Chase has also agreed to guarantee Bear Stearns' $30bn borrowings from the Federal Reserve. "We believe the amended terms are fair to all sides and reflect the ...
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