Forbes.com – Bear Stearns Cos. shareholders are scheduled to vote on the proposed acquisition of the investment bank by JPMorgan Chase & Co. on May 29, according to a regulatory filing.
If the vote on the sale fails, Bear Stearns said in the filing it will likely have to cut "significant numbers" of staff, would not ensure those fired would receive severance packages and could possibly have to file for bankruptcy.
A shareholder lawsuit trying to stop JPMorgan Chase from voting the minority stake in Bear Stearns it acquired in early April has been withdrawn, according to filings made with the Securities and Exchange Commission on Thursday.
Current shareholders will continue with lawsuits trying to stop the acquisition from being completed and are seeking unspecified damages, according to the filing.
In early April, JPMorgan acquired a minority stake in Bear Stearns as part of a plan to eventually acquire the entire company. JPMorgan was issued 95 million shares of Bear Stearns common stock last month – a move that limited the chances the vote on the deal could fail.
