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JPMorgan Chase To Acquire Bear Stearns for $2 a Share

16 March 2008
Author: Harvey Posted under Investing

BSC - Bear Stearns, facing collapse because of the mortgage crisis, agreed Sunday evening (03/16/08) to be bought by JPMorgan Chase for a bargain-basement price of less than $250 million.

The all-stock deal values Bear Stearns at about $2 a share, based on JPM - JPMorgan’s closing stock price on Friday 03/14/08. In contrast, shares of Bear Stearns, which fell $27 on Friday, closed at $30.

I’m glad I don’t own any shares. Guess the morning trade will be a mess. Hmm.., I wonder if my mutual fund owns any BSC - Bear Stearns?

UPDATE: Gold is going higher by more than $23 an ounce. Japanese stocks fall more than 3% on Monday. The FED cuts rates on a Sunday. Yep, tomorrow may be the worst day we have seen in the markets in a long while. Just tuck your head between your legs and… you know. Get ready for a hard landing.


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