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Way To Go

By CNBC.com | 26 Sep 2007 | 03:54 PM ET

Bear Stearns is in serious talks with several outside investors, including Warren Buffett, about selling as much as 20 percent of the firm, according to a report in The New York Times online edition on Wednesday.  Shares of the investment bank

[BSC  123.0    8.76  (+7.67%)   were up almost 8% on the report.  A Bear Stearns spokesman declined to comment to CNBC on a potential deal.

The Times reported on its Web site Wednesday afternoon that Bear Stearns was in "serious talks" with several outside investors, including Buffett, Bank of America, Wachovia and two Chinese companies: the Citic Group and China Construction Bank.

"I think it's absolutely necessary because Bear Stearns was in deep trouble," Richard Bove, an analyst at Punk Ziegel, told CNBC.

Bove upgraded Bear Stearns shares to "market perform" from "sell" on Wednesday.

"About six weeks ago, we made the argument that the company had to be taken over, and watching the stock price over the last few hours, the stock was supposed to be going down but was actually going up, so it was apparent that something was going on," Bove said.

Bear Stearns' $850 million Asset-Backed Securities Fund experienced declines in July, prompting some investors to seek redemption of their investments.

The investment bank, however, believes the assets in the fund -- tied to Alt-A and prime mortgages -- are worth more than what current market conditions will allow.

Bear Stearns saw the collapse of two hedge funds in July.

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Nye Lavalle
Yeah, wait till I talk to them! lol
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CNBC downplays Bear Stearns investor talk

Reuters - Thu Sep 27, 2007

NEW YORK (Reuters) - Shares of Bear Stearns Cos Inc (BSC.N: Quote, Profile, Research) fell 3 percent on Thursday afternoon after a CNBC report downplayed any talks between the investment bank and potential outside investors.

"At present Bear is not holding talks about the sale of a stake to anyone," CNBC reporter David Faber said.

Bear Stearns shares fell as much as 3.4 percent immediately after the CNBC report before settling at $120.56, or down 2.5 percent, on the New York Stock Exchange.

In recent weeks, Bear Stearns' stock has surged and fallen on reports of potential outside investors, such as a Chinese bank or Billionaire Warren Buffett.

Battered by the collapse of two hedge funds and a disruption in its fixed-income trading, Bear Stearns is seen as relatively weak when compared to other U.S. investment banks.

An outside investor is seen as way to bolster the company.

(Reporting by Tim McLaughlin)
 
Rumors placed to boost the stock value?  I think that's still illegal!

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Way To Go

Unfortunately there is not much the SEC can do about the effect rumors have on the stock price.  I am not sure why anyone would want to buy a stake of the size reported in Bear.

 

Now this thread can be retired.

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Even though we agreed to 'retire' this post, couldn't pass these up.  No doubt the colorful language 'spoke to me'........usually does.

http://bigpicture.typepad.com/comments/2007/09/buffett-to-buy-.html

Buffett to Buy Bear? Bull$%*# !

Thursday, September 27, 2007 | 06:18 AM
 
 

Buffett Bear (BSC) buy a bluff!?

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