Racing against the clock, JPMorgan Chase agreed to buy once-mighty Bear Stearns for just $2 a share Sunday, “in a fire sale deal clearly aimed at stemming broader panic” in the global markets, according to Tom Petruno of The Los Angeles Times.
Bear Stearns stock, which closed at $30 a share Friday, traded at $158 last April. Petruno wrote that the total value of JPMorgan’s deal is about $240 million.
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A takeover had been rumored since Friday when Bear Stearns said its liquidity had significantly deteriorated. The Federal Reserve stepped in and negotiators raced to complete the deal Sunday, before Asian markets opened. They hoped to contain drastic declines when U.S. markets opened Monday.
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