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Forum Report
Practical Objectives of May 14 Open
Meeting
Based on the Forum’s workshop explorations and yesterday’s
survey of
NYSSA member views to get a sense of professional investor interests,
summarized below, we expect the Forum’s
open meeting this coming Wednesday, May 14, to focus on the definition
of alternative terms that might be reasonably considered for JPMorgan’s
acquisition of Bear Stearns.
Plans for the meeting have been refined to support this
practical objective:
§
As previously indicated, the alternative terms defined at the
meeting will be presented to JPMorgan for its consideration and comment.
§
Arrangements have been made for
Glass Lewis & Co., a leading proxy advisory firm, to consider the issues
addressed at the meeting in its report of client recommendations for the May
29 vote, and to make its report available to Forum participants.
§
One or more surveys of investors will be conducted to
determine their views of the proposed alternative terms, or of other issues
that may be relevant.
Investor interest in alternative terms
As indicated in the appended summary of the NYSSA survey, 42% of
the responding investment professionals stated that they would like to see
alternative terms for JPMorgan’s acquisition of Bear Stearns. This interest
was of course much higher, at 61.5%, among respondents who reported being an
existing or prospective holder of Bear Stearns stock. More surprisingly,
though, 33.3% of respondents who reported being existing or prospective
holders of JPMorgan stock, but not of Bear Stearns,
said they would like to see alternative terms.
Please let me know if you have questions about the survey
response, or any suggestions for Wednesday’s meeting.
GL – May 9, 2008
Gary Lutin
Lutin & Company
575 Madison Avenue, 10th Floor
New York, New York 10022
Tel: 212-605-0335
Email:
gl@shareholderforum.com
NYSSA Member Interest in Bear Stearns
Acquisition Terms
May 8, 2008 Survey
Following are the questions and responses, as percentages of
total answers, in a survey of members of the New York Society of Security
Analysts. The survey was initiated by email shortly before noon on May 8,
2008, distributed to a sampling of NYSSA members requesting an anonymous “2
minute” response on a linked web site “to better understand your interest”
in the proposed JPMorgan acquisition of Bear Stearns. There had been no
previous NYSSA reports to members, either by email or on its web site,
relating to the Shareholder Forum program or its planned May 14 open meeting
to address the Bear Stearns situation, and the reference to the meeting in
the survey request was limited to the request for feedback “so that we will
be able to use your input in our planning.”
1. Do you have an investment interest in either of these companies, as an
existing or prospective holder of its stock?
|
|
Yes |
No |
|
Bear Stearns (NYSE:BSC) |
29.5% |
64.8% |
|
JPMorgan Chase (NYSE:JPM) |
45.5% |
50.0% |
2. Do you have a professional research interest in the securities of
either of these companies?
|
|
Yes |
No |
|
Bear Stearns |
44.3% |
53.4% |
|
JPMorgan Chase |
47.7% |
50.0% |
3. Would you like to see alternative terms for JP Morgan’s acquisition of
Bear Stearns?
|
Yes |
No |
Indifferent |
|
42.05% |
20.45% |
37.50% |
4. Would you want to be informed of proposals for alternative terms that
may be considered by JPMorgan or by a court resolving shareholder
litigation?
|
Yes |
No |
Indifferent |
|
68.18% |
13.64% |
18.18% |
5. Would you want to participate in the process of defining proposed
alternative terms?
|
Yes |
No |
Indifferent |
|
21.59% |
55.68% |
22.73% |
|