- NY Times:
Bear Stearns Racing Toward Selling Itself to JPMorgan
Bear Stearns was racing Sunday afternoon to sell itself to JPMorgan Chase for more than $2 billion, according to people involved in the talks. Meanwhile, Bear Stearns, whose solvency is in question, was also making preparations to file for bankruptcy protection as a backup plan should a deal not be reached, these people said.
According to Mr. Trone’s analysis, Bear Stearns’s best-case scenario would be to sell for $60 a share, a value based on a few key assumptions: clients stop pulling their business from Bear, the units produce half their normal revenue, and the troubled securities are reduced in value by a third.
- Wall Street Journal:
Bear Stearns Closes in on Deal To Sell Itself to J.P. Morgan
"Bear Stearns Cos. was closing in on a deal Sunday afternoon to sell itself to J.P. Morgan Chase & Co., as worries deepened that the financial crisis of confidence could spread if Bear failed to find a buyer by Monday morning.
People familiar with the discussions said all sides were pushing hard to complete an agreement before financial markets in Asia open for Monday trading. "None of these things is done until they're done," Treasury Department spokeswoman Michele Davis said Sunday afternoon. "But I think everyone's expectation is sometime in the early evening hopefully" the deal will be done.
Also read Sunday, March 16, 2008: "The Yield Curve Spread as a Market Predictor"