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Message: <blockquote data-quote="Yan He" data-source="post: 9773" data-attributes="member: 59">BSC went up from $117 to $128 when the news came out 10 mins ago...Wonder if any Risk Arb pick it up and the probability of completion. <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile    :)" loading="lazy" data-shortname=":)" /> ***************Bear Stearns, its shares and reputation beaten down after the collapse of two hedge funds, is in serious talks with several outside investors, including Warren E. Buffett, about selling as much as 20 percent of the firm, people briefed on the discussions told The New York Times Wednesday.Other investors who have expressed an interest in buying a minority stake include the Bank of America, Wachovia and two Chinese institutions — the Citic Group and China Construction Bank, these people said.Such an expression of interest will help bolster Bear and its chief executive, James E. Cayne, who has struggled to restore the firm's reputation. Last week, Bear reported a 61 percent decline in third quarter profit, the result of a disastrous quarter in which its mortgage trading business suffered a blow because of this summer's tighter credit market.As always in discussions surrounding any sale of the bank, price is the main issue and these talks, like others, could founder. Mr. Cayne has traditionally demanded so steep a premium from outside investors, sometimes as high as 40 percent above the share price, that a deal has been difficult to consummate.A spokeswoman for Bear Stearns said the firm did not comment on market rumors. Bank of America and Wachovia also declined to comment. Mr. Buffet could not be reached for comment.But, the steep decline in the firm's share price and its relative value — it trades a little bit above its book value — has stoked renewed interest as an investment. Mr. Buffet, in particular, reached out to Mr. Cayne about a month ago, the people briefed said, when the stock was approaching its one-year low of $100.Earlier this month, Joseph Lewis, a currency trader based in the Bahamas and a bridge-playing friend of Mr. Cayne's, disclosed that he had accumulated a 7 percent stake in the company.As usual, Mr. Cayne is keeping his cards close, and there is no sign yet which of the investors will end up cementing a deal.Bear's shares jumped today as news of a possible sale leaked into the market, with the stock trading up over 3 percent.</blockquote>

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