INSTANT VIEW: JPMorgan raises Bear bid to $10/shr

NEW YORK (Reuters) - JPMorgan Chase & Co. said on Monday it had raised its offer for Bear Stearns Co. Inc. to about $10 per share.

The two companies said JPMorgan will buy 95 million newly issued shares of Bear Stearns common stock, or 39.5 percent of Bear's common stock. They said the deal should be completed on or about April 8.

The Federal Reserve Bank of New York's $30 billion special financing has also been amended.

MARKET COMMENTS:

JIM HUGUET, CEO, GREAT COMPANIES INC, TAMPA, FLORIDA

"I don't know how you could put a deal like that together in two or three days and have all your t's crossed and your i's dotted. That's a very complex thing to put together.

"I would imagine that they are starting to step back and look at it and say, 'OK, what's really here?'

"People are saying, 'Gee, this is going to make the folks that work there happy.' I don't know how $10 is going to make you five times happier than $2 when it was worth a $100 six months ago."

"So are people going to be dancing in the halls? I doubt it.

"But if they don't take something then they run the risk of this thing unwinding. Although if they wait long enough, maybe they get it turned around and get it repositioned. It's really like playing poker. You don't want to show the other person what your cards are and you want to try and create a bluff and I think that's what you are into."

JOE KINAHAN, CHIEF DERIVATIVES STRATEGIST AT ONLINE BROKERAGE

THINKORSWIM INC IN CHICAGO

"As long as the Fed has signed off on this revised deal, this is great for everyone.

"It will be interesting to see how this will impact the shares of Merrill Lynch, Lehman Brothers and Goldman Sachs as well as the rumors surrounding these companies regarding their financial health. This may be the bottom for the financial sector."

MICHAEL KASTNER, HEAD OF FIXED-INCOME, STERLING STAMOS CAPITAL

MANAGEMENT, NEW YORK:

"It does" help market confidence.

"At first glance, it looked like JPMorgan was forced to the table and did a throwaway bid. Then when they went in to reevaluate -- first Bear Stearns and then the market -- and (found) even at $10 a share it's an outstanding value.

"It fits well with their business and they can feel comfortable that they are not overpaying. The market feels a little better about it since JPMorgan has an inside view, and found (Bear Stearns) is not a total basket case."

IAN LYNGEN, INTEREST RATE STRATEGIST, RBS GREENWICH CAPITAL,

GREENWICH, CONNECTICUT.

"The (bond) market traded lower throughout the morning on expectations for the JPMorgan bid for Bear to be increased, and it was -- up to $10 share and for 39.5 percent of the firm -- with JPMorgan agreeing to guarantee Bear's first $1 billion of any losses on financed assets, with the Fed on the hook for the remaining $29 billion of the $30 billion of borrowings.

MICHAEL HOLLAND, FOUNDER HOLLAND & CO. LLC NEW YORK.

"I'd certainly expect that Jamie Dimon would not put a number out there if it wasn't likely to be the best and final offer.

"I believe (Dimon) figured out that there's a price he can insure certainty of the deal. It's a very sound insurance policy that the deal goes through.

"You had a lot of people buying last week buying stock at 3-7 dollars a share who will make a quick profit and therefore would vote their shares -- particularly the bondholders who were buying stock."

THOMAS DI GALOMA, HEAD OF U.S. GOVERNMENT TRADING, JEFFERIES &

CO. IN NEW YORK

"I wouldn't get too excited about positive news in the financials. The economy is still lacking."

KURT KARL, HEAD OF ECONOMIC RESEARCH, SWISS RE, NEW YORK

"The Bear Stearns deal is encouraging for the market -- $2 was a very good deal for JPMorgan but not necessary fair for the Bear Stearns shareholders, and this is certainly getting closer to fair."

ANTON SCHUTZ, PORTFOLIO MANAGER, MENDON CAPITAL ADVISORS IN

ROCHESTER, NEW YORK

"Quite frankly, I thought there was a deal. Apparently to expedite it, it appeared JPMorgan had to step up and pay more.

"I think the revision with the Fed is also curious.

"I think this is about the Fed trying to save face, and I think this is about Bear Stearns trying to save face."

JAMES ELLMAN, PORTFOLIO MANAGER, SEACLIFF CAPITAL, SAN

FRANCISCO

"Jamie Dimon says the amended terms are fair for all sides. That implies the old deal was not fair. And if $2 was not fair, why is $10 fair?

"Clearly this increases the chance the deal goes through, but there are still going to be employees and shareholders unhappy with $10 a share.

Some investors will probably try to block it in the courts. At the end of the day, JPMorgan has such a strong hand, and Bear Stearns is so weak, JPMorgan will likely win, but the biggest winners here will likely be the lawyers."

(Reporting by Burton Frierson, Al Yoon, Megan Davies, Richard Leong, Chris Reese, Dan Wilchins and Paritosh Bansal in New York and Doris Frankel in Chicago, assembled by Christopher Kaufman)