By | March 25, 2008
Billionaire investor Joseph Lewis, the largest shareholder at Bear Stearns Cos., said he may push the company to consider alternatives to the $339 million buyout offer from JPMorgan Chase & Co.
“In light of the announcement of the proposed transaction” Mr. Lewis will take “whatever action” he deems necessary “to protect the value” of his $1.26 billion investment in Bear Stearns, the investor said in a Schedule 13D filed yesterday with the U.S. Securities and Exchange Commission.
Mr. Lewis said he may “encourage” Bear Stearns “and third parties to consider other strategic transactions or alternatives.”
Mr. Lewis and Thunderstorm Capital’s John Dorfman have threatened to oppose the planned sale to JPMorgan. The third-biggest U.S. American bank agreed March 16 to buy Bear Stearns in an all-stock deal that values the securities firm at $2.32 a share, or $339 million, based on yesterday’s closing price. Bear Stearns stock closed at $30 two days before it was forced to accept JPMorgan’s terms to avert a collapse.
The SEC filing today also disclosed that Lewis purchased an additional 1.04 million Bear Stearns shares during February and March, raising his total stake to 12.1 million shares, or 8.35% of common shares outstanding.
