Dollars and Jens
Monday, March 17, 2008
Will the JPM-BSC deal stand?
Here's an interesting possibility:
Did Bear agree to the lowball offer only to buy time? Harte hypothesized about that prospect a report today: "We suspect that many BSC shareholders will be disappointed with the outcome, and while we believe an approval is the more likely outcome, we do not believe it is incomprehensible that this deal may have bought BSC additional time to assess its situation which may lead shareholders to reject the offer."
One other whimsical thought that occurred to me last night, to the extent that Paulson's and/or Bernanke's hands were in this, was that they may have wanted the sale price to be nominal specifically to send a message that they're not going to bail out investors.

It will be interesting to see what unfolds, but I think I'm done for tonight.

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