JPMorgan raises Bear Stearns bid

JPMorgan Chase & Co said today that it raised its all-stock offer for Bear Stearns Cos to about $10 a share, roughly five times its original offer.

Under the revised terms of the deal, each share of Bear Stearns common stock will be exchanged for 0.21753 shares of JPMorgan common stock.

JPMorgan will also purchase 95 million new Bear Stearns shares, representing 39.5 per cent of the investment bank's outstanding common stock. JPMorgan is buying the shares at the same price as its takeover offer and expects to complete the deal by April 8th.

The boards of both companies have approved the revised takeover offer and the share purchase agreement.

JPMorgan's original agreement on March 16th to pay $2 per share in stock for Bear was widely considered a fire-sale price for the 85-year-old Wall Street investment bank.

Bear collapsed as large subprime mortgage losses and falling confidence in the company prompted a run on the bank. Bear shares surged more than 65 per cent to $10.60 on the news of the higher bid.