Bear Stearns Sale to JPMorgan Approved

Shareholders, as expected, okayed the deal, which will close tomorrow.
By Dan Freed ,

Bear Stearns'

(BSC)

shareholders approved a sale to

JPMorgan Chase

(JPM) - Get Report

Thursday, bringing an official end to one of the most important and controversial deals in the history of modern finance.

In a deal backed by a $29 billion loan from the

Federal Reserve

Bank of New York, JPMorgan acquired Bear for $10 a share. The price was significantly above the initial agreement of $2 per share, which drew howls of protest from Bear Stearns shareholders, but far below the $57 price at which the stock closed just two days ahead of the initial agreement announced March 17. The deal is expected to close at the end of the day Friday.

About 84% of shareholders voted in favor of the merger, according to a press release from JPMorgan. JPMorgan must now sell assets valued at $30 billion that were owned by Bear Stearns in order to repay the Fed. It also must wrestle with an estimated $9 billion in liabilities as it struggles to integrate the new acquisition.

The deal marks the first time since the Great Depression that the Federal Reserve has bailed out an institution other than a commercial bank.

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