Pining For The Past

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Citic Securities is negotiating with Bear Stearns to get a few more shares of the bank, in light of recent changes in BSC stock price (it went from shitty to shittier). Under the original terms of the agreement, Citic paid $1bn for about 6 percent of Bear; now its stake will probably rise to about 9.9 percent. I don’t really have much to add, because this all seems pretty reasonable in my professional opinion. But I will say that it sort of bums me out a little. Why is Bear Stearns being so rational and honest about this? The old Bear would’ve been all, “What are you talking about, nothing’s changed. Our stock price is the same. Where are you getting this information from?” Nothing I can do, just makes me sad, kind of like the redesign (that’s right, I’m with you! Is that what you wanted to hear? I feel the same way! It sucks! No one consulted me on the changes! Let’s burn this motherfucker down!).
On a related note, one Credit Suisse employee recently shared with me that he’s been telling colleagues, “life’s too short: buy Bear Stearns.” My little ‘takeaway’ ought to be: short Credit Suisse, but it’s not. I think that deal would actually put a lot of smiles on a lot of people’s faces. And that’s why we’re in this business anyway, isn’t it?
And for those who haven’t heard, James Cayne will now be getting high with Eloise. I approve.
Bear and Citic to reshape holdings in each other [FT]
Fancy New Digs for Bear’s Chairman [DealBook]

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