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JPMorgan Might Boost Bear Offer: Report

TSC Staff

JPMorgan Chase (JPM Quote) is considering raising its $2-a-share offer to buy Bear Stearns (BSC Quote) in order to win over stockholders who are upset about the price, according to a published report.

The New York Times said Monday that under the terms the sides are now discussing, JPMorgan would pay $10 for each share of Bear.

The original buyout was reached last weekend, after the Federal Reserve and the Treasury Department helped arrange a last minute deal to prevent Bear from having to file for bankruptcy. Just days before, a liquidity crisis had put Bear's future in doubt.

According to the report, the Fed will have to clear a new agreement between the two.

Since news broke of the initial arrangement, Bear's stock has traded down sharply, but it never reached the $2 level. Recently, it was surging $3.49, or 59%, to $9.45. JPMorgan was down 57 cents at $45.40.