Bear investors may seek restraining order on buyout

NEW YORK (Reuters) - Two Michigan-based pension funds are considering whether to ask a court to temporarily bar JPMorgan Chase & Co from moving forward with its takeover of ailing Bear Stearns Co Inc, a plaintiff's lawyer said on Tuesday.

The funds are "presently weighing whether it is appropriate to seek a temporary restraining order in Delaware Chancery Court" on JPMorgan's plan to buy 39.5 percent of Bear Stearns' stock ahead of a shareholder vote on the takeover, said Gregory Nespole, a lawyer for the Police and Fire Retirement System of the City of Detroit.

The Detroit fund last week sued Bear Stearns in Delaware over the proposed JPMorgan buyout, Nespole said. He said the fund is coordinating efforts with another plaintiff, the Wayne County Employees' Retirement System, which filed a separate lawsuit on Monday over the merger.

(Reporting by Martha Graybow: Editing by Steve Orlofsky)