Investors try to block Bear Stearns takeover

Posted on Posted in INDUSTRY NEWS

Investors in the troubled US securities firm Bear Stearns have challenged the offer made for it by JPMorgan, it has been reported.

They are asking for a higher price than the $10 a share currently offered and filed papers requesting a judge delay the bank’s plans to issue 95 million new voting shares.

Lawyer Pamela Tikellis, who filed the papers, said: "The lock up stock sale is designed primarily, if not solely, to eviscerate the voting franchise of the current Bear Stearns stockholders.”

The bank is a casualty of the credit crunch and a lack of customer confidence, which led investors to withdraw money from its accounts.

A global shortage of funds made it difficult for Bear Stearns to borrow from other lenders, who were worried it had lent too much money to sub-prime borrowers.

The Telegraph recently reported that more than a third of Bear Stearns’ staff inoffices in London could lose their jobs.

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