JP is upping their offer? Why? As reported here the reason is:
“JPMorgan boosted investors’ optimism by lifting its offer for Bear Stearns to $10 per share from $2. The revised plan is aimed at soothing Bear Stearns shareholders upset over JPMorgan’s earlier offer, which was made at the behest of the Federal Reserve when Bear Stearns was near collapse.”
Ahhh, the newly poor BSC shareholders are upset about the hurried buyout offer. JP Morgan had second thoughts, and obv. they want to do the right thing. Isn’t that nice!? When it comes to making money, there are absolutely no hard feelings about fair play, and making full restitution to investors who in retrospect appear to have gotten dealt a bad hand at the (Liar’s) poker table. On Wall Street people sure play nice!
“See, it appears that Bear managed to stick a nuclear bomb (and its ticking!) in the “merger agreement.” That, being a clause that survived even if the deal failed to close that obligated JPM to guarantee some of Bear’s liabilities!
“Rumor is that Dimon was apoplectic when he discovered this and suddenly there was interest in renegotiation.”
“He who smelt it, dealt it.” -Some Wisenheimer