And you thought those other bidders just got bored and walked away when the Fed set the deadline? Not according to the Journal’s take on the Senate hearing.
When it became clear that a deal had to happen before Asian markets opened late Sunday night, Bear Stearns’s negotiating leverage “went out the window,” said Mr. Schwartz. Among the parties examining Bear Stearns’s books was a sophisticated buyer who was “prepared to write a multibillion check to invest in equity,” but that would have required another financial institution to help finance the deal, Mr. Schwartz said. He didn’t identify the potential buyer.
No doubt the cries of “foul, foul!” will lift anew.
Officials Say They Sought to Avoid Bear Bailout [WSJ]
Just wanted to say, you’re prolific today.
OK, sounds like a private equity outfit. They are sophisticated in getting banks to loan them money for LBOs. But that would have been unlikely in this market, even if you gave them 6 months to make the deal. Now someone told me that private equity is still hiring. Can someone explain why?
the other buyer was JC Flowers
one more thing… the JC Flowers bid was just over 3 BN… but they have no access to the discount window so, no deal.
I thought it was 1-800- Flowers
hahah 11:56
any swf’s involved in the deal anyone knwo?
Clear example of rational pricing. Nothing against Carney, but you get what you pay for – the site content differential between a PE pro (like me!) and a blogger is night and day. The Internet cannot afford you.
The above statement is completely agnostic to personal views on either’s ideology.
Any dope on Severance/layoffs….
Some IB SMDs are still calling on clients like those Japanese fighters they found in the 60s….
Thats laughable. Some dude with a $3 billion check would not have saved Bear Stearns.
I heard everyone at BSC will be fired, the furniture sold and the light bulbs stolen by JPM employees. Plants are for donation to charities along Madison Ave.
AD at Bear NY HQ. Severance actually a good deal – divided between revenue producers and everyone else. Rev producers get 25-35% of ’07 bonus if they stay on through close and aren’t offered a job, plus severance of anywhere from 1 month up to 20 months. Non-rev producers get 50-60% of ’07 bonus plus double salary as long as they stay through close or longer, plus severance under same terms. Almost better to be severed than to get a JPM job, since you get paid basically a half year’s salary plus bonus, after which (say, early ’09) the market should be better for finding new employment.
Retain or terminate decisions to be communicated to most people by April 15-18. Close supposedly expected 5/15-30. Earliest people will be hitting the street unemployed but with varying degrees of sev pkgs is likely 5/30.