Bear Stearns chairman sells stake for $61 million
by Kay Murchie
Bear Stearns chairman, James Cayne, has sold his entire stake in the bank for $61 million (£31 million).
Following the news, Bear’s share price was down by about 5%.
According to analysts, Mr Cayne offloading all his shares is an indication that investors cannot expect a higher price for their stake.
Bear Stearns is the most high-profile US casualty of the credit squeeze and was forced to seek emergency funding from JP Morgan Chase and the Federal Reserve of New York earlier this month.
JP Morgan Chase announced its intention to take-over Bear Stearns and offered just $2 (£1) a share. However, last week, JP Morgan Chase increased its offer to $10 (£5) after the original offer of $2 a share infuriated some Bear Stearns shareholders who said the bank was being sold at a bargain price
Once the take-over is completed, it is expected there will be job cuts.
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