JPMorgan Chase has announced it is acquiring Bear Stearns for about USD 2 a share in stock.
JPMorgan has said that they will ensure that the stock trades till the deal is completed.
On Friday Bear Stearns had received emergency funding from JPMorgan Chase to stave off liquidity problems arising from the credit crisis.
JPMorgan Chase, in association with the Federal Reserve Bank of New York, will provide a secured loan facility for an initial period of up to 28 days, allowing Bear Stearns to access liquidity as needed.
Bear Stearns also said it is talking with JPMorgan Chase regarding permanent financing or other alternatives. The Board of the Federal Reserve has approved the proposal for such a bailout.
The Bear Stearns stock plunged almost 50 percent after the news of the financing came in.
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