Bear Stearns Cos. reached an agreement to sell itself to J.P. Morgan Chase & Co....Translation: If you owned a chunk of Bear Stearns stock, you just got totally hammered.
The deal calls for J.P. Morgan to pay $2 a share in a stock-swap transaction, with J.P. Morgan Chase exchanging 0.05473 share of its common stock for each Bear Stearns share. Both companies' boards have approved the transaction, which values Bear Stearns at just $236 million based on the number of shares outstanding as of Feb. 16. At Friday's close, Bear Stearns's stock-market value was about $3.54 billion.
But not to worry, that's the way it's always worked, and if you were an insider, you were warned well in advance. If not, too freaking bad, loser.
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