Don't shareholders have to approve? Closing is 3mos. News has to surface about that BSC is hiding in it's books. $2 is theft unless JPM's cost of $6B is correct (including lawsuits, severance and associated costs with closing a business), so how bad is the balance sheet then? There's got to be another shoe falling that the FED & JPM already know about.
Market action clearly saying that: i) BSC is worth a lot more than the bid price ii) JPM is getting a steal. JPM is up 10% today. So the Fed has basically added 10% to JPM's market cap with their funding assistance. In other words, the market value of the bailout was $13 billion profit to JP Morgan shareholders. Who said the Fed was there to prop up the system? Here we see their true colours - making I-bankers $13 billion in one day by using public funds to back a mercenary opportunistic takeunder.
Sorry but I'm going to have to disagree that this thing isn't over. BSC employees have cleared out their desks. JPM is running their balance sheet. If you really expect the shareholders to say no, what do you expect to happen to BSC in the meantime? Do you really think they'll reject the vote in three months, when JPM has secured the right to buy the building and kick Bear Sterns out anyway? Just some food for thought...
funny. I interpreted it this way. to avoid what happened with MSFT and YHOO, JPM offers more than what the street expects for BSC! and the deal is done.
BSC is worthless. it has negative value. that's why the 30billions guarante.... this is a dead cat bounce. BSC will go below 2$
In hindsight from a point in the not too distant future the purchase of BSC by J P Morgan will look like a wonder stroke. It will bring huge additional value to JPM shareholders. But right now this deal has been fashioned in panic times when rightly the Fed is proactive in ensuring confidence in the whole US banking and credit system.
This is what happens when you screw up. You lose. Next time , let the employees and shareholders demand fiscal responsibility. Everyone knew BSC was playing with toxic garbage, but wanted a piece o'dat easy$. They got the shaft. What happens to the bondholders here?