Published on:
Thursday, 5th June, 2008 00:03:57 GMT
Source:
Yahoo! News
Category:
Business
Bear Stearns Cos' private-equity arm Bear
Stearns Merchant Banking is expected to announce on Thursday it
will spin off into an independent company with JPMorgan Chase &
Co (JPM.N) as its largest investor, the Wall Street Journal
said.
JPMorgan will assume around $1 billion of investments and
commitments, the newspaper said, citing people familiar with
the matter.
JPMorgan completed its acquisition of Bear Stearns over the
weekend for a fire-sale price, after the latter collapsed under
the weight of the credit crisis and suffered the equivalent of
a bank run.
Bear Stearns Merchant Banking manages about $5 billion, and
is lead by Chief Executive John Howard. The division is known
for investments in the retail and consumer-products businesses,
the newspaper said.
(Reporting by Varsha Tickoo in Bangalore; Editing by Louise
Heavens)
