Why is Bear Stearns Trading Higher than the JP Morgan Offer Price?
March 21st, 2008
If you have checked the trading price of Bear Stearns Company (BSC) stock in the four days since the company was sold to J.P. Morgan Chase for $2 per share in J.P. Morgan stock, you might well wonder why it is trading at more than twice the price J.P. Morgan is supposedly paying for it.
Doesn't make a lot of sense unless you follow the reasoning of some market players and a lot of Bear Stearns stockholders. A deal isn't a deal until it is done.
See also:
- Thursday’s Events: BOC MPC Report, U.S. Jobless Claims, Philly Fed Mfg Report (July 17th, 2008)
- U.S. Jobless Claims Rise to 366K in Week Ending July 12 (July 17th, 2008)
- U.S. Housing Starts and Building Permits Soar in June (July 17th, 2008)
- Fed’s Kroszner Says Fed Rules Will Affect Subprime and Alternative Mortgages (July 17th, 2008)
- Higher U.S. CPI, FOMC Minutes Lead to Greater Chance of Rate Hike (July 16th, 2008)