Archive for the 'News' Category

$2 a share??

Sunday, March 16th, 2008

Just saw the announcement come across the wires that JP Morgan has agreed to acquire Bear Sterns for $2 a share. BSC closed at $30/share on Friday afternoon.

I really assumed it had to be a typo – $2 a share? That is essentially saying that the company is worthless – so, why even bother?

Obviously we’ll get more details as time goes on, but this seems a little nuts to me.

ETA:  Unscheduled quarter point rate cut – if only to offset the disaster of the BSC sale?