Chairman Cayne sells entire stake for $61m
NEW YORK - James Cayne, the chairman of Bear Stearns Cos., sold all his shares in the crippled securities firm for $61 million prior to a vote on the company's pending takeover by JPMorgan Chase & Co.
Cayne sold 5.66 million shares at $10.84 apiece on Tuesday, according to a regulatory filing yesterday. The value of his stake plummeted from almost $1 billion last year, when the shares peaked at $171.50 before the collapse of the subprime mortgage market toppled two of the firm's hedge funds and prompted a contraction in credit markets worldwide. A Bear Stearns spokesman had no comment on why or to whom Cayne sold his stock.
Cayne, 74, led Bear Stearns as chief executive for 15 years until January, when he stepped down under pressure after the New York-based firm revealed the first loss in its 85-year history. The company was forced to turn to the Federal Reserve for funding and then submit to a takeover by JPMorgan two weeks ago after a run on the securities firm.
