The Bear Stearns Companies, Inc. (BSC.DL)

ddberg (96.63) Submitted: 3/18/08 12:44 PM : Start Price: $6.81 BSC.DL Score: -33.54

Forbes is reporting that two groups are piling into BSC stock so that they can vote in favor of the $2 buyout offer from JPM, as they are holders of BSC debt and are looking to protect those investments from a possible BSC bankruptcy. So the jump in BSC's stock price (now around $7.35 per share) has less to do with people being hopeful that the employees and large institutional shareholders will vote down the deal, and more to do with powerful forces working behind the scenes to ensure that the $2 deal does go through, even if it means losing $5 a share (current price versus $2 offer price) on the equity side. Quite intriguing, and if true it looks like BSC stock will be heading back south in the coming weeks/months.

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