On Sunday JPMorgan Chase agreed to purchase Bear for $236 million, or $2 a share — a fraction of its value even from the close of trading Friday — sent fears that there might not be much of Bear Stearns left when the merger is completed later this year.

At $2 a share the more than 14000 employees will walk away with pennies. This is so unfortunate.
The deal between JPMorgan and Bear was put together over the weekend to save Bear from both bankruptcy and possible liquidation. If approved by Bear shareholders, it will bring an end to the company’s 85-year-old history.

Bear’s employees currently own about one-third of the firm’s stock. For so long it was considered a point of pride and loyalty to own stock in the firm, and selling was frown upon.

Do you think employees should invest less in the companies they work for or is this just a case of bad luck for the employees?

http://www.freshcustomerservice.com

Advertisements