Cayne Sells Out

Jimmy Cayne is done with Bear. He filed his walking-papers with the Securities and Exchange Commission, the chairman and former chief executive of Bear revealed he had sold 5,612,922 shares at $10.84. Another 45,000 were sold by his wife. That position represents almost all of Cayne’s holdings in Bear, although he may still have options for more shares.
This should put an end to talk that a group of large shareholders might seek another buyer. Cayne was rumored to have talked with Joe Lewis, who owns over 9% of the company, about finding another bidder. But that was before JP Morgan Chase raised its price tag from $2 to $10 a share.
In another news, a reliable source tells us that Cayne was actually punched by another Bear executive in the company gym last week. We haven’t even tried to confirm that one.
Update: BSC sinking fast in after hours trading.
Cayne’s SEC Filing [SEC.gov]

Comments (29)

  1. Posted by guest | March 27, 2008 at 5:33 PM

    This is just a little weed money for ol’ Jimbo.

  2. Posted by BSD | March 27, 2008 at 5:37 PM

    Jamie Dimon told Jimmy to sell his shares so that the public shareholders STFU and approve the deal. Don’t you worry, Jimmy will get his payout in bonus soon enough.

  3. Posted by AJ | March 27, 2008 at 5:57 PM

    Wow, maybe he used his shares as collateral for something and is receiving margin calls?

  4. Posted by diablo | March 27, 2008 at 6:55 PM

    Agree with BSD. There must be a good chunk of change for cayne as part of the deal.

  5. Posted by NomadTrader | March 27, 2008 at 7:08 PM

    I guess food stamps are next for Jimbo.

  6. Posted by guest | March 27, 2008 at 7:27 PM

    60mm is about 59mm more than the average person who posts on dealbreaker will make in a lifetime.
    no?

  7. Posted by guest | March 27, 2008 at 7:28 PM

    I can’t figure out why Jimmy Cayne has been showing up at Bear Stearns at all. It seems that whatever limited business he has left to do could be phoned in. He and Alan Schwartz have got to be on the worst of terms. Most of the employees want to kill him. It’s got to be galling for him to see the JP Morgan guards posted everywhere. Can’t he hire someone to come in and get his stuff?

  8. Posted by guest | March 27, 2008 at 8:01 PM

    @7:27
    God, I hope that doesn’t turn out to be the case.

  9. Posted by guest | March 27, 2008 at 8:45 PM

    I wouldnt be surprised if someone with nothing left to lose puts a cap in Jimmy in broad daylight. I’d spend that last 60mm on security.

  10. Posted by guest | March 27, 2008 at 9:05 PM

    My $12.50 calls just turned worthless.

  11. Posted by guest | March 27, 2008 at 9:39 PM
  12. Posted by guest | March 27, 2008 at 9:49 PM

    After face lift
    http://www.15minutesmagazine.com/archives/Issue_66/front_page.htm
    Looks like the cat lady-wildenstein

  13. Posted by guest | March 27, 2008 at 9:52 PM

    this deal is done, and it doesn’t seem like it’s going to result in a wholesale lay-of of BSC staff. people in JPM banking/equities are sweating who is going to have a job in 2 weeks. initial talk was all of BSC was going to go away, but sounds like JPM mgmt has given line managers a quota of BSC peeps that they have to hire

  14. Posted by AJ | March 27, 2008 at 10:39 PM

    His daughter’s cute…

  15. Posted by Anal_yst | March 28, 2008 at 12:11 AM

    AJ, maybe at a B’nai brith youth convention after a 5th of old grandad, maybe

  16. Posted by guest | March 28, 2008 at 1:15 AM

    @9:49 pm. Thanks for the post of the photo of Patricia Cayne. I always wondered what a student of Jewish religious tradition looked like.
    She may have had a face lift, but she still looks a good twenty years younger than Jimmy. I doubt that the younger woman is Jimmy’s daughter. I’ll bet $61.3 million that Patricia isn’t Jimmy’s first wife.
    Thanks, @9:52 pm for the post about the employment situation in JPM banking/equities. I know some good people sitting idle, waiting for the ax to fall, in Bear Stearns’ ibank.

  17. Posted by guest | March 28, 2008 at 7:20 AM

    I heard that total number of BSC layoffs will be 12,708

  18. Posted by guest | March 28, 2008 at 7:53 AM

    Actually it was Alan Schwartz who was punched out in the gym by one of the Bear investment bankers who was upset that Alan didn’t call him to help make the deal. Did you really think that Jimmy Cayne is the sort of guy to use the gym at all?

  19. Posted by guest | March 28, 2008 at 7:59 AM

    I am a Bear AD in HQ. JPM people are, as we’ve heard, nervous about their jobs in some areas. There has been discussions at the highest levels about movements among JPM people to make way for Bear people coming in, at various levels, particularly in areas where JPM isn’t that strong, or, where Bear has better people in general (i.e. fixed income outside of the MBS stuff; risk management; prime brokerage; research, etc.) Layoffs at Bear will certainly not be 12k out of 14k people; JPM was seeking to add thousands of headcount outside the US alone over the next 18 months, and thus all the BSC employees outside the US have a good chance to find an even better job at the new org. JPM is looking at this as a great way to get a bunch of good people without having to pay stupid idiot bullshitter headhunter “consultants” 2 or 3 months’ salary as a commission. Redundancies will be there but absorbing a large amount of the staff is the intention and there is noise at JPM about better-qualified Bear people suddenly showing up and being MDs of business units, etc. Not everybody at Bear was involved in the bullshit products that caused lots of grief. Most people, in fact, weren’t, and had a better focus on the bottom line than the white-shoed, bureaucratic, hierarchical JPM people. Culture clash coming soon. Who wins?

  20. Posted by guest | March 28, 2008 at 8:44 AM

    @7.59… Bear Stearns had “risk management ” people? Yeah sure.. they mustve been great at their jobs…

  21. Posted by guest | March 28, 2008 at 8:45 AM

    I heard that 7.59 will be the first one fired for poor writing skills. The other 12,345 bsc-ers will exit stage left as quickly as their pink slips can be printed out by JPM HR.

  22. Posted by guest | March 28, 2008 at 9:24 AM

    @7:59 All of a sudden JPM people are white shoed? I have news: in IBanking its another shlock shop, bulge wannabe.

  23. Posted by guest | March 28, 2008 at 9:40 AM

    1:15am, she is 66, he is 71
    Not exactly a trophy wife….

  24. Posted by guest | March 28, 2008 at 10:34 AM

    shouldn’t cayne have had some hedging if so much of his net worth was tied up in Bear stock? Didn’t these guys learn anything during the internet bubble? Even if you are locked up, you can hedge some of your holdings to prevent this kind of a loss. Chalk it up to bear’s risk strategy, right?

  25. Posted by guest | March 28, 2008 at 10:37 AM

    @9:40 am. Multiple news report have him at 74. If she is 66, nice plastic surgery work!

  26. Posted by guest | March 28, 2008 at 11:49 AM

    @9:49PM, @10:37AM. Speaking of the Bride of Wildenstein, check this out. This one puts Patricia Cayne and that Davis chick/dude to shame.
    http://www.dailymail.co.uk/pages/live/articles/showbiz/showbiznews.html?in_article_id=516768&in_page_id=1773

  27. Posted by guest | March 28, 2008 at 12:48 PM

    10:37
    still at 66, v. 74…I have ties older than that age difference
    The Tropy Wife Manual says the min age a man can get away with in marrying a younger babe is:………….half is age plus seven: so, (74/2)+7=44
    Guess Jimmy is getting short changed in the bedroom and the boardroom!

  28. Posted by guest | March 28, 2008 at 12:56 PM

    Further bad pics; the daughter needs a facelift in this one; at least we know looks dont run in the family….
    http://www.newyorksocialdiary.com/socialdiary/2004/04_20_04/socialdiary04_20_04.php
    Page down to the model/babes to heal you retinas……

  29. Posted by guest | March 30, 2008 at 1:19 AM

    Poor old Jimmy Cayne. He walks away from Bear Stearns with 61 million while the shareholders and employees get the royal screw. I guess he’ll need that money to pay off the mortgage of his new diggs at the Plaza Hotel. A 28 million dollar pad on the 14th floor, 6000 square feet, room service, maid service and breathtaking views of Central Park.
    http://nymag.com/daily/intel/2008/03/jimmy_cayne_closes_on_sweet_pl.html

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