Pension funds try to block Bear takeover
Two Michigan-based pension funds are hoping to halt the imminent takeover of Bear Stearns by JPMorgan Chase with a restraining order.
Two Michigan-based pension funds are hoping to halt the imminent takeover of Bear Stearns by JPMorgan Chase with a restraining order, according to published reports.
The Wayne County Employee’s retirement system and the Police and Fire Retirement system of the city of Detroit have petitioned the Delaware Chancery Courts for an order blocking the sale of close to 95 million newly issued shares of Bear Sterns to JPMorgan, a 39.5% stake in the company which would greatly facilitate the takeover.
The funds, both Bear stockholders, have already sued the directors of that company, claiming that in accepting JPMorgan’s offer of a low share price, they were betraying their investors and should be looking for a higher offer.
The takeover still requires majority shareholder approval to go through.
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