A lot of excitement in Asia about a report from the NYT (parroted breathlessly by MarketWatch etc) saying that "Under the terms being discussed, JPMorgan would pay $10 a share in stock for Bear, up from its initial offer of $2 a share"... hence the "QUINTUPLE" headlines.
But, without checking anything, it looks like QUINTUPLE is a bit of a stretch - that is just for the equity portion, rather than the whole cost to JP, which would have included an approx. $6bn write-off. So the cost to JP goes from $6bn w/off + $2/sh = $6.25bn to $6bn w/off + $10/sh = $7.25bn (or thereabouts)... which is ~15% higher (and making the effort would seem to be quite Bear-employee-friendly.) A billion bucks, or 15% higher is quite a bit, but it's NOT QUINTUPLE!
Calm down!!
(And THIS, in my view, is why nobody wants to sit on risky positions across (long) weekends these days!)
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Meanwhile, UBS is supposedly just about to raise ~$10bn in fresh capital via a 10% rights issue?!
And on Friday, S&P put LEH and GS on negative watch...?!
Stumble It!
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