JPMorgan offers five times original amount for Bear Stearns
( dpa )- Faced with massive resistance from stockholders, the US bank JPMorgan Chase Monday quintupled its offer for the ailing investment bank Bear Stearns to 10 dollars a share.
The bank said its first step would be to buy 40 per cent of the stock directly from the investment bank .
The US central bank approved - in fact urged - the sale last week to shore up the ailing financial sector that has been eroded by subprime mortgage defaults .
JPMorgan originally offered two dollars a share - a huge writedown from the 30 dollars its shares brought just recently . The board accepted the offer , but shareholders were poised to reject the firesale price .
The new offer puts a value of 1 billion dollars on the company .