Mr kumar

Explaining Bear Stearns' Current $7 Price

The shareholders will definitely hold out for a new deal , it doesnt make sense for them to vote yes to a 99% loss on their investments.
We should remember that the FED was desperate to save Bear Stearns from being bankrupt since it would have sent nasty ripples across the market.
This whole deal is to save the rest of the market , but unfortunately it smacks the shareholders , their argument would be that why should they take a huge loss when everyone else profits.
As long as they have the power to stop the deal , they will definitely do that. If they keep blocking this deal and if there is no other option then the FED might have to come in and increase the offer to the shareholders
How much is the $256 million dollar question