Bear Stearns, facing collapse because of the mortgage crisis, agreed Sunday evening to be bought by JPMorgan Chase for a bargain-basement price of less than $250 million, the two companies announced.
The all-stock deal values Bear Stearns at about $2 a share, based on JPMorgan?s closing stock price on Friday, the companies said. In contrast, shares of Bear Stearns, which fell $27 on Friday, closed at $30.
A deal for Bear Stearns would end the independence of one of Wall Street?s most storied firms and help halt a sweeping panic that set in at the end of last week, causing Bear Stearns?s
stock to swoon 47 percent on Friday.