J.P.Morgan says deal will 'ulitmately' be positive to earnings, in the same sense that the sun will ultimately become a blackened cinder.
They're only paying $238 million for them. Bear's headquarters is probably worth about $1.6 Billion. So you figure out what a mess they are in. Yikes!
J.P. Morgan Chase to buy Bear Stearns for $2 a Share
By Anne Stanley
Last update: 7:16 p.m. EDT March 16, 2008
SAN FRANCISCO (MarketWatch) --
J.P. Morgan Chase has agreed to buy Bear Stearns [s:bsc] for $2 a share in a stock-swap deal, according to a report in the online edition of the Wall Street Journal citing people familiar with the matter.
J.P. Morgan will exchange 0.05473 shares of its common stock per one share of Bear Stearns stock. Both boards have approved the transaction. The Journal reported people familiar with the discussions said all sides were pushing hard to complete an agreement before financial markets in Asia open for Monday trading.
The Journal report quotes Treasury Deptartment spokeswoman Michele Davis as saying, "None of these things is done until they're done. But I think everyone's expectation is sometime in the early evening hopefully" the deal will be done
