Bear shareholders may try to get higher offer

[Earth Bound Misfit]

Source: Market Watch

Stock price suggests J.P. Morgan bid may be put off until market calms down
By Alistair Barr, MarketWatch
Last update: 6:23 p.m. EDT March 17, 2008
SAN FRANCISCO (MarketWatch) -- During a conference call held by J.P. Morgan Chase & Co. Sunday to discuss its offer to buy Bear Stearns Cos., an individual investor in the beleaguered brokerage firm announced that he would vote against the fire-sale deal. The comment by a person identifying himself as Brian Firestone was followed by a brief silence. Then J.P. Morgan executives moved on to the next question.

But the prospect that Bear Stearns investors may reject the bank's offer of $2 a share -- at least for a few months -- is now being priced into the market, analysts said Monday.
J.P. Morgan's offer is worth more than $2 a share because the bank's stock (the currency it's using to try to purchase Bear) climbed 10% on Monday. Bear shares closed at $4.81 -- roughly double the value of the bid.

Indeed, Joseph Lewis, one of Bear Stearns' largest shareholders, told CNBC on Monday that J.P. Morgan's offer was "derisory." The currency-trading billionaire owns almost 10% of the brokerage firm, having built a stake since September when the shares were trading at more than $100.
"People are speculating that shareholders aren't going to approve the deal for a while," said Ryan Lentell, an equity analyst at Morningstar, in an interview. "If market conditions improve, they may be able to negotiate for a higher price or another bidder may come to the table."

link: http://www.marketwatch.com/news/story/bear-stock-price-suggests-shareholders/story.aspx?guid=%7BBACCBF9B%2D4189%2D4B6E%2DAA99%2DAC946EA8F017%7D&dist=TNMostRead

[aquart]

1. "If market conditions improve..." What are they smoking?

Greedy little thieves unwilling to take their punishment. Well, good luck with that.

[Mojorabbit]

2. What happens now

Will this cause more turmoil in the markets and banking system/