JP Morgan Chase has upped its bid for ailing financial firm Bear Stearns to $10 a share from a previous $2 per share bid. Emerging reports suggest that the sweetened bid is expected to convince shareholders at Stearns to acquiesce to a buyout.
As Bear Stearns is mostly owned by its employees, JP Morgan CEO Jamie Dimon has been trying to appease them after shareholders felt that the original terms of the deal undervalued their 85-year old brokerage.
Incidentally stocks rallied on the first trading day after the Easter holiday weekend on news of the sweetened Bear bid and an incline in existing home sales, reports the Associated Press.
Home resales were up 2.9 percent in February after a seven month slump.
The Dow Jones industrials average finished 1.59 percent higher, while the tech-centric NASDAQ composite index added a hefty 3.04 percent and the broader S&P 500 index gained 1.53 percent.