GRG

Explaining Bear Stearns' Current $7 Price

What if a counter party thinks they can influence the outcome of the shareholder meeting by buying a ton of stock for a pittance and then reject the bid. Stock goes up they make a very very nice premium and become a major stake holder in Bear. They then turn around and make a counter offer for bear higher than the one by JP, which shareholders might approve in the long run, especially if they rope in people like Joe Lewis for support. If Lehman could get back their liquidity then under the same market conditions i dont see why Bear should have any problems. A lot of trading desks last week were asked to halt dealing with both Lehman and Bear. The questions is who has the monetary backing to do that and at the same time go against JP and the FED.