Traders Move Bear Stearns (BSC) Beyond New Offer Price
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Traders are pressing their bets on Bear Stearns (NYSE: BSC), again moving the market price above the JPMorgan offer.
The new offer from JPMorgan (NYSE: JPM), based on JPM stock price of $47.23, is worth $10.27 to BSC shareholders, yet BSC is trading near $12 per share.
The move in the stock above the new offer suggests traders think JPMorgan will have to raise the offer again to get the deal done.
This may be unlikely given the fact that Bear is issuing new stock which will equal 39.5% of the outstanding shares of Bear Stearns. In addition, all of the members of the Bear Stearns Board of Directors have indicated that they intend to vote their shares held as of the record date in favor of the merger. (LJ)
The new offer from JPMorgan (NYSE: JPM), based on JPM stock price of $47.23, is worth $10.27 to BSC shareholders, yet BSC is trading near $12 per share.
The move in the stock above the new offer suggests traders think JPMorgan will have to raise the offer again to get the deal done.
This may be unlikely given the fact that Bear is issuing new stock which will equal 39.5% of the outstanding shares of Bear Stearns. In addition, all of the members of the Bear Stearns Board of Directors have indicated that they intend to vote their shares held as of the record date in favor of the merger. (LJ)
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