Bear Stearns delays first-quarter report
Written on April 15, 2008
Bear Stearns Cos. said Thursday it has delayed the filing of its fiscal first-quarter results because of disruptions caused by its buyout agreement with JPMorgan Chase & Co.
In a filing with the Securities and Exchange Commission, the investment bank said it expects to file its Form 10-Q by the extended deadline of April 14.
Bear Stearns said it can’t provide a reasonable estimate of its results for the three months ended Feb. 29, but expects earnings to be "significantly lower" compared with the prior-year period.
"The continuation of the global liquidity crisis coupled with a further re-pricing of credit risk and weakness in the company’s fixed income, investment banking and asset management businesses created a difficult operating environment," the investment house said in the filing.
With backing from the Federal Reserve, JPMorgan last month offered to buy Bear Stearns for $2 per share, or about $250 million online payday advance. In response to outcry from Bear Stearns shareholders, the offer was later raised to $10 per share. Under an amendment to the deal, Bear Stearns agreed to swap a 39.5% stake in itself, or 95 million shares, for JPMorgan (JPM, Fortune 500) stock. That transaction closed Tuesday.
Bear Stearns (BSC, Fortune 500) shares fell 21 cents to close at $10.20.
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