From the Los Angeles Times
Bear Stearns investors drop legal action to prevent buyout by JPMorgan Chase
They will continue to seek damages, arguing that the securities firm should be valued at more than $10 a share, a lawyer says.
From Bloomberg News
May 8, 2008
Investors in Bear Stearns Cos. dropped their request for a court order that would stop a proposed buyout by JPMorgan Chase & Co., less than two days before a scheduled hearing in the case.
The request was withdrawn in a letter sent Tuesday night to New York State Supreme Court Justice Herman Cahn, said Alex Gershon, a lawyer for the Louisiana Municipal Police Employees' Retirement System.
Shareholders will continue to seek damages, arguing that Bear Stearns should be valued at more than JPMorgan's offer of about $10 a share, he said.
Cahn is presiding over lawsuits filed by Bear Stearns investors in New York and Delaware after JPMorgan agreed March 16 to buy it in a deal brokered by the Federal Reserve. A two-day, $15-billion run on Bear Stearns had prompted the Fed to step in with emergency funding in the biggest government bailout of a U.S. securities firm.
Greg Markel, a lawyer for Bear Stearns, didn't return calls seeking comment. Brian Marchiony, a JPMorgan spokesman, declined to comment.
Shares of Bear Stearns fell 57 cents, or 5.3%, to $10.27 on Wednesday. JPMorgan declined $1.63, or 3.4%, to $46.57.
