Fire sale of Bear Stearns shareholders fate.

<P> Bear Stearns (Bear Stearns Cos.) Ready to commit themselves to JP Morgan Chase (JP Morgan Chase & Co.) Plan its good as a blow to investors. .Stunned, the shareholders want to disrupt the deal, but now, because there is no other power buyers appeared, in addition to their fate probably have no choice. .</ P> <P> It http://finance. Hearing, Bear Stearns stock price on Monday blew out, a drop of 84%, but the $ 4.81 closing price was still much higher than the JP Morgan bid. .Many speculators took the opportunity to buy the stock, they expect to JP Morgan Chase will ultimately raise your bid to avoid acquisition plan died. .One trader said that if you are a shareholder of Bear Stearns, why does not manufacture point of confusion, see JP Morgan Chase will raise your bid, or braving the risk of insolvency of Bear Stearns gamble? .He said: They (Bear Stearns) is simply the next rush. .Why should the shareholders bear the losses? .</ P> <P> one of the largest shareholder of Bear Stearns Joseph • Lewis (Joseph Lewis) said they did not accept the JP Morgan bid. .9.4% of shares held by Bear Stearns, said Lewis, whose bid does not reflect the true value of Bear Stearns. .He said through a spokesman, as a bid "is simply laughing at us, I do not believe that shareholders will agree." .</ P> <P> another deeply dissatisfied shareholders are Bruce • Sherman (Bruce Sherman). .He is the Legg Mason Inc.'s Asset management company Private Capital Management's chief executive. .According to informed sources, Sherman on Monday to the Bear Stearns have expressed dissatisfaction with the sale transaction. .It is understood that the idea of the sources said Sherman, JP Morgan Chase Bear Stearns over the weekend on a positive comment on the financial outlook, which is equal to recognize the value of Bear Stearns it out to more than USD 236 million purchase price. .</ P> <P> together hold about 30% of the shares of Bear Stearns employees, many of whom threatened to veto the sale plan. .</ P> <P> But analysts say the one hand, bring together government regulators strongly Bear Stearns and JP Morgan Chase, at the same time, now there is no other powerful families of Italy to buy Bear Stearns. .In this case, to reach a better deal seems unlikely. .</ P> <P> Bear Stearns shareholders may Bear Stearns transaction for the sale proceedings, it seems inevitable. .JP Morgan plans $ 6,000,000,000 earmarked reserves to meet these potential risks and other related costs. .And even if shareholders gain the upper hand in the legal proceedings, in order to get the money out of these years might have. .</ P> <P> JP Morgan Chase committed to trading obligations of Bear Stearns are all one-year warranty. .Even if Bear Stearns shareholders to vote against the deal, this commitment will not be canceled. .If Bear Stearns to remain independent, it still may face a new liquidity crisis, and make themselves reduced to the point of bankruptcy. .In that case, the shareholders of any interest in it would be hard be guaranteed. .Under normal circumstances, if they go into liquidation phase, shareholders came bottom of the list for compensation. .</ P> <P> It is now a shareholder vote at least six weeks. .Where will the market recover, then Bear Stearns shareholders may claim as an independent company able to survive, and then refused to own "fire sale" to JP Morgan. .However, almost no one believed this began last June, so that the whole crisis in the beleaguered credit markets will soon be over. .</ P> <P> currently the major shareholder of Bear Stearns, including some well-known mutual funds and fund companies, which is not difficult to see that many of Bear Stearns investors actually understate the credit crisis in the face .risk; hand, many of them are still a few months ago the company added in this and other brokerage firms in the investment, they bet the worst of the credit crisis is already over, with a low price could not be more investment in low-wealth .attractive financial agencies. .</ P> <P> current major shareholder of Bear Stearns, including the famous Jim • Barrow (Jim Barrow) in charge of the Vanguard Windsor II Fund, the Bill • Miller (Bill Miller) management of Legg Mason Value Trust, and .Fidelity Investments (Fidelity Investments), MFS Investment Management and Putnam Investments subsidiary of a few funds. .Whether it is 450 billion in assets in Vanguard, or 133 billion dollars in assets of Legg Mason, or whether other funds have refused to disclose their positions situation. .</ P> <P> star manager in those depressed people, most well-known, was undoubtedly the most surprising Barrow. .Morningstar (Morningstar Inc.) Released the latest report, Barrow in to see the market value of Bear Stearns fell below book value, after the time of the Company to be reborn from the crisis, so in last year's strong stock holdings .. .As of the end of 2007, Vanguard has held 800 million shares of Bear Stearns shares, which accounted for 7% of the outstanding shares, in April last year, the fund invested only 92 million shares of Bear Stearns stock. .</ P> <P> as of last Friday in the month, the value of the fund has shrunk by 6.7%, while taking into account dividends reinvested in the case of the S & P index over the same period a decrease of 4.3%. .</ P> <P> English name JPMorgan Chase: JPMorgan Chase & Co. Headquarters location: Listing: NYSE: JPM </ P> <P> English name of Bear Stearns: Bear Stearns .Cos. Headquarters location: Listing: NYSE: BSC </ P> <P> Related reading: </ P> <P> Global search: Who is the next Bear Stearns </ P>.