JPMorgan Chase & Co acquired The Bear Stearns Companies Inc. for All-stock — 0.21753 JPMorgan Chase shares per Bear Stearns share (implied about $10 per share); JPMorgan also agreed to buy 95 million newly issued shares, or 39.5% of Bear Stearns, a transaction completed in May 2008, structured as all stock. The deal was a Merger.
The Bear Stearns Companies Inc. operates in Investment banking / capital markets, is based in New York, New York, USA. At the height of the 2008 financial crisis, JPMorgan Chase agreed to rescue the failing investment bank Bear Stearns. An amended merger agreement raised the exchange ratio to 0.21753 JPMorgan shares per Bear Stearns share (about $10 per share, up from the initial roughly $2), and JPMorgan separately agreed to purchase 95 million newly issued Bear Stearns shares to lock in control. JPMorgan agreed to bear the first $1 billion of losses on a $30 billion pool of Bear Stearns assets financed by the Federal Reserve Bank of New York.
Amended terms judged fair to both sides given the value and risks of the Bear Stearns franchise, while adding certainty for shareholders, counterparties and clients.
We believe the amended terms are fair to all sides and reflect the value and risks of the Bear Stearns franchise, and bring more certainty for our respective shareholders.Jamie Dimon, Chairman and CEO, JPMorgan Chase
The substantial share issuance to JPMorgan brings enhanced coverage and certainty for our customers, counterparties, and lenders.Alan Schwartz, President and CEO, Bear Stearns
Advisory firms were not disclosed for this transaction.