Is Bear Stearns Shopping For More Cash?
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Bear Stearns (NYSE: BSC) is lower again today as rumors are swirling the company is out shopping around for more cash.
CNBC is reporting the investment bank is in talks with Fortress Investment Group (NYSE: FIG) about a capital infusion.
Investors in Bear are frustrated with the news and selling the stock because just a few months ago the company announced a $1 billion deal with China's CITIC Securities. CITIC Securities acquired approximately $1 billion of 40 year convertible trust preferred securities that will convert, on a fully diluted basis, to approximately 6% of Bear Stearns' shares. Investors fear Bear will have to give away the house this time.
Yesterday, Bear Stearns reported a massive $6.90 per share fourth quarter loss, with write-downs cutting the results by $8.21 per share. Bear did nothing right in the fourth quarter; Institutional Equities revenues were down 11%, Fixed Income revenues were down from $1.5B to $1.1B and Investment Banking revenues were down 44%.
Shares of Bear Stearns are down 1.4% today, near multi-year lows.
CNBC is reporting the investment bank is in talks with Fortress Investment Group (NYSE: FIG) about a capital infusion.
Investors in Bear are frustrated with the news and selling the stock because just a few months ago the company announced a $1 billion deal with China's CITIC Securities. CITIC Securities acquired approximately $1 billion of 40 year convertible trust preferred securities that will convert, on a fully diluted basis, to approximately 6% of Bear Stearns' shares. Investors fear Bear will have to give away the house this time.
Yesterday, Bear Stearns reported a massive $6.90 per share fourth quarter loss, with write-downs cutting the results by $8.21 per share. Bear did nothing right in the fourth quarter; Institutional Equities revenues were down 11%, Fixed Income revenues were down from $1.5B to $1.1B and Investment Banking revenues were down 44%.
Shares of Bear Stearns are down 1.4% today, near multi-year lows.
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