Bear Stearns basket case goes to J P Morgan for US$2 a share - share prices shrinking faster than Glaciers - Nightmare on Wall Street Part : 13
In a done deal Bear Stearns Directors agreed to the sale (?) today of their shares to J.P. Morgan Chase for US $2 a share in an all stock deal. Bear Stearns shareholders will get 0.05473 shares of J.P. Morgan in exchange for their shares, which puts a value of $236 million on Bear Stearns. ( J P Morgan have as adviser Mr Tony Blair from Jan 10th)
Joe Lewis has probably lost at least US$800Mn. EX CEO Warren Specter ,50 who was sacked / resigned August 4th must be a happy man to have got out.
The Times finger Lehman Brothers as the next victim ...who they said ,"sought to reassure the market when it said yesterday that it had secured a $2 billion (£1 billion) credit line with Paolo Tonucci, the bank’s global treasurer, calling it “a strong signal from the market and our key bank relationships”."
Posts on Bear Stearns - the crooks, con-men, and criminals
Asian Markets open sharply lower
Japan sold off 3.4% in the opening minutes and is likely to be followed by drops in exchanges in China and other Asian countries as they open for Monday morning trading.
Hitachi opend down 8.3% to 623 yen. Mazda was down 4.8% to 341. NEC was off 5.1% to 376. Toyota (NYSE: TM) traded off 3.3% to 4920.
If US exchanges follow suit, the FTSE could open 200 down with write downs on banking stocks of up to 10% . The Dow could easily open down over 300 points with some financial shares (Lehman Bros) suffering sharper losses. Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), and Cigna (NYSE: CI) hit bottoms last weak expect more of the same.
The 52 week lows tell tale of quality stocks being pounded.
The Fed has become the lender of only as well as last resort
The Fed is panicking to try and stop panic.
The Federal Reserve Board unanimously approved a request by the Federal Reserve Bank of New York to decrease the primary credit rate from 3-1/2 percent to 3-1/4 percent. The Fed also authorized the Federal Reserve Bank of New York to create a lending facility to improve the ability of primary dealers to provide financing to participants in securitization markets. This facility will be available for business on Monday, March 17 for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under this facility may be collateralized by a broad range of investment-grade debt securities. The interest rate charged on such credit will be the same as the primary credit rate, or discount rate, at the Federal Reserve Bank of New York.
This means making certain that financial firms can turn over paper that may be worth well under $1 for $1 worth of capital.
LBO debts become toxic and car loans are metastasising through the loan market.
The Fed has become the lender of only as well as last resort.
UPDATE FTSE opened 120 down (chart)and Banks down HBOS 60p = 11%
British Energy Group plc 17th March 2008
"The Board of British Energy Group plc notes the recent speculation about a possible transaction involving the Company. The Board announces that the Company is in discussions with interested parties in the context of its future and its plans to take a pivotal role in any new nuclear programme. These discussions could lead to a business combination or an offer for the Company, although there can be no certainty that any offer will be made." Shares up 70p.
So that's our nuclear power in the hands of Boards outside the UK - FCUKED for Energy Security.