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On April 10, 2008, Bear Stearns Cos. (BSC) announced the filing of its fiscal first-quarter results would be delayed as a result of disruptions caused by its buyout agreement with JPMorgan Chase & Co. (JPM).

In a filing via the Securities and Exchange Commission (SEC), the investment bank said it expects to file its Form 10-Q by the extended deadline of April 14, 2008. Bear Stearns said it could not provide a reasonable estimate of its results for the three months ended Feb. 29, but expects earnings to be “significantly lower” compared with the prior-year period.

“The continuation of the global liquidity crisis coupled with a further re-pricing of credit risk and weakness in the company’s fixed income, investment banking and asset management businesses created a difficult operating environment,” the investment house said in the filing.

With backing from the Federal Reserve, JPMorgan last month offered to buy Bear Stearns for $2 per share, or about $250 million. In response to outcry from Bear Stearns shareholders, the offer was later raised to $10 per share. Under an amendment to the deal, Bear Stearns agreed to swap a 39.5% stake in itself, or 95 million shares, for JPMorgan (JPM, Fortune 500) stock. That transaction was finalized on April 8, 2008.

This entry was posted on Friday, April 11th, 2008 at 9:14 am and is filed under Bear Stearns Investors. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.