JP Morgan to guarantee the trading obligations of Bear Energy
Following JP Morgan’s planned $2 per share acquisition of Bear Stearns after a run on the company ended 85 years of independence for the securities firm, the investment bank has moved to secure the trading obligations of Bear’s subsidiaries, including Houston-based Bear Energy.
“Effective immediately, JP Morgan Chase is guaranteeing the trading obligations of Bear Stearns and its subsidiaries and is providing management oversight for its operations,” said the bank in a statement, following the acquisition which valued Bear Stearns at $240 million, less than a tenth of its value last week.
JP Morgan did not immediately respond to a request for comment.
Late last week reports surfaced that Bear Stearns’ Bear Energy trading unit was liquidating all or part of its
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