JPMorgan Amends Pact With Bear

JPMorgan Chase and The Bear Stearns Cos. Inc. have amended their merger agreement, making changes that include raising the implied value of Bear Stearns common stock from $2 per share to approximately $10 per share. The two companies also entered into a share purchase agreement under which JPMorgan Chase would purchase 95 million newly issued shares of Bear Stearns common stock -- or 39.5% of the outstanding Bear Stearns common stock after the issuance -- at the amended agreement price. In addition, the Federal Reserve Bank of New York's $30 billion in special financing associated with the deal has been changed so that JPMorgan Chase will bear the first $1 billion of any losses associated with the Bear assets being financed and the Fed will fund the remaining $29 billion on a nonrecourse basis to JPMorgan Chase.