Bear Stearns Auction?

[blazespinnaker]

I wonder if this whole 2$ rigamorole is just an ploy to put the equity on the auction block.

It's currently pushing 4$. Someone is thinking that someone is going to bid higher.

[Tulpen]

Re: Bear Stearns Auction?

I wonder if this whole 2$ rigamorole is just an ploy to put the equity on the auction block.

It's currently pushing 4$. Someone is thinking that someone is going to bid higher.

It is likely just short covering for those who have short positions in the stock or having written naked puts.

[GRG55]

Re: Bear Stearns Auction?

I wonder if this whole 2$ rigamorole is just an ploy to put the equity on the auction block.

It's currently pushing 4$. Someone is thinking that someone is going to bid higher.

Absolutely zero chance. Dimon's got it. The Fed and Treasury don't want any uncertainty about what the outcome for Bear is going to be. Markets don't like uncertainty.

[blazespinnaker]

Re: Bear Stearns Auction?

Absolutely zero chance. Dimon's got it. The Fed and Treasury don't want any uncertainty about what the outcome for Bear is going to be. Markets don't like uncertainty.

0 chance, eh? heheh.

Well, now, in that case let me just go put my life savings in some shorts.. be right back!

[GRG55]

Re: Bear Stearns Auction?

0 chance, eh? heheh.

Well, now, in that case let me just go put my life savings in some shorts.. be right back!

Zero chance. Unless Ben and Hank both resign. Right now.

You don't think they have enough problems on their plate? You think they give a shzt about the Bear shareholders? And exactly which company is going to come in and start a bun fight with JPM over the carcass? Citi? BoA? WaMu? Wells? Merrill? Morgan? Who? There isn't a financial company out there that doesn't know that they may need good friends in the Fed and Treasury some day soon. There are not going to spoil this party.

This is a done deal, and all the crap about Bear employees having to vote on the takeover and maybe not approving it, is complete nonsense.

[jimmygu3]

Re: Bear Stearns Auction?

Zero chance. Unless Ben and Hank both resign. Right now.

You don't think they have enough problems on their plate? You think they give a shzt about the Bear shareholders? And exactly which company is going to come in and start a bun fight with JPM over the carcass? Citi? BoA? WaMu? Wells? Merrill? Morgan? Who? There isn't a financial company out there that doesn't know that they may need good friends in the Fed and Treasury some day soon. There are not going to spoil this party.

This is a done deal, and all the crap about Bear employees having to vote on the takeover and maybe not approving it, is complete nonsense.

Assuming you're going "all in" today on Bear shorts, GRG?

[GRG55]

Re: Bear Stearns Auction?

Assuming you're going "all in" today on Bear shorts, GRG?

THe time to short Bear Stearns was when their two hedge funds blew up last year. Anybody screwing around shorting financials today obviously has no good investing ideas in their cranium.

[ax]

Re: Bear Stearns Auction?

Or at least last Thursday. Somebody bought 55,000 March 30s....seems like they knew something.

[GRG55]

Re: Bear Stearns Auction?

Or at least last Thursday. Somebody bought 55,000 March 30s....seems like they knew something.

...and don't expect the SEC to do a damn thing about it either.

[blazespinnaker]

Re: Bear Stearns Auction?

Zero chance. Unless Ben and Hank both resign. Right now. .

I wouldn't be so sure about zero chance.

[Tulpen]

Re: Bear Stearns Auction?

I wonder if this whole 2$ rigamorole is just an ploy to put the equity on the auction block.

It's currently pushing 4$. Someone is thinking that someone is going to bid higher.

Very interesting, today it traded over $8.

This is what I think is happening:

- BS is getting margin calls they cannot meet.
- Panic, calling other bank buddies and Bernanke.
- Ok, let's do a fire sale so we don't default and perhaps we do not even have to report.
- JPM buy BS it for $2 a share.
- Announce to the public, done deal!

At least they thought it was a done deal, and then the trouble started:

What if the shareholders do not approve? They cannot just sell a public company without shareholder's approval!

I think that is the play right now. Someone is trying really hard to avoid BS from having to declare BK so that there won't be a cascade of defaults. And in order to do that you have to own at least 50% of the common, hence the buying.

Opinions?

[GRG55]

Re: Bear Stearns Auction?

I wouldn't be so sure about zero chance.

It's a "free market" so place your bet.

[GRG55]

Re: Bear Stearns Auction?

Very interesting, today it traded over $8.

What if the shareholders do not approve? They cannot just sell a public company without shareholder's approval!

I think that is the play right now. Someone is trying really hard to avoid BS from having to declare BK so that there won't be a cascade of defaults. And in order to do that you have to own at least 50% of the common, hence the buying.

Opinions?

Oh ya? Just watch. Be assured that JPM made sure they had the ability to gather the proxy votes to put this through. Otherwise Dimon would not have wasted his time and his company's money to help out the Fed and Treasury. Only the most suicidal financial company or private equity firm would dare think about crossing Ben and Hank on this one.

[Tulpen]

Re: Bear Stearns Auction?

Oh ya? Just watch. Be assured that JPM made sure they had the ability to gather the proxy votes to put this through. Otherwise Dimon would not have wasted his time and his company's money to help out the Fed and Treasury.

It is true that institutions own the majority of the shares and I understand what you are saying but then again BSC is trading almost 300% above $2. It is true that if we take all the shares owned by the insiders and the five largest institutional holders we already have more than 50%. But how likely is it that those largest institutional holders, and one of them is UK based, agreed so quickly in a timeframe of one or two days?

If it were a done deal there would be arbitrage opportunity that hedge funds would take advantage of, that is clearly not happening.

If you have a better explanation I would like to hear it.
To me it is a mystery. I have never seen anything like this, a stock trading 300% over its value, it is unheard of.

[jtabeb]

Re: Bear Stearns Auction?

Very interesting, today it traded over $8.

This is what I think is happening:

- BS is getting margin calls they cannot meet.
- Panic, calling other bank buddies and Bernanke.
- Ok, let's do a fire sale so we don't default and perhaps we do not even have to report.
- JPM buy BS it for $2 a share.
- Announce to the public, done deal!

At least they thought it was a done deal, and then the trouble started:

What if the shareholders do not approve? They cannot just sell a public company without shareholder's approval!

I think that is the play right now. Someone is trying really hard to avoid BS from having to declare BK so that there won't be a cascade of defaults. And in order to do that you have to own at least 50% of the common, hence the buying.

Opinions?

TAKE BS private, take them all private, that will be the next move, you watch! No disclosure problems with a PRIVATE Company. Just crater the price, then by it cheap. (It's all cheap anyway when you can print money, who cares what ******* price you pay, if you don't have to pay for the money). I hear counterfitting can be quite lucrative, BTW.