It's official. Bear Stearns is being bought by JP Morgan for roughly $2/share (0.05473 shares of its stock for one share of Bear Stearns' stock). This is a huge win for JP Morgan; however, the big losers in this deal are Bear Stearns employees as most of their compensation is in the form of stock, which has fallen over 97% in the last few days as panicked investors fled the stock. Literally, some of the employees were millionaires just days ago...
For more detailed information, look here
03/17 UPDATE #1: An estimated 7,000 jobs will be cut (approximately 50% of the current workforce at Bear Stearns)
03/17 UPDATE #2: Joe Lewis the second largest share holder (9.4%) in Bear Stearns has lost $1 billion!!!!
03/20 UPDATE #3: JP Morgan is offering (some) Bear Stearns employees bonuses to stay on and support the acquisition.
03/24 UPDATE #4: Bear Stearns stock climbs to $10/share; JP Morgan increases it's offer to $10/share for the acquisition for Bear.
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