Bear Stearns Chairman sells $61.3 million of stock

By Dan Wilchins

NEW YORK (Reuters) - James Cayne, Chairman of Bear Stearns Cos Inc (BSC.N: Quote, Profile, Research) sold $61.3 million of his shares of the company according to a filing on Thursday, signaling the bank's shareholders are unlikely to get a higher price for their shares.

JPMorgan agreed earlier this week to increase its original bid for Bear Stearns, which had faced a run on the bank and was close to collapse.

Some investors were clearly hoping JPMorgan Chase would increase its bid again, or that Bear Stearns would find another buyer, because Bear Stearns shares closed on Thursday at $11.23 on the New York Stock Exchange, about 20 percent above the current value of JPMorgan's offer.

If getting a higher price were likely, Cayne would be unlikely to sell his shares.

Bear's share price fell about 5 percent in after market trading to $10.68. The share sale took place on March 25 but was disclosed in a document after the market closed on Thursday.

The 5.66 million shares Cayne sold would have been worth about $1 billion last year, when Bear's share price peaked at over $170.

JPMorgan Chase's sale is expected to close by mid-June, assuming a majority of shareholders approve it.

The banks helped ensure the deal would be approved earlier this week when JPMorgan agreed to buy 95 million newly issued Bear Stearns shares, equal to a 39.5 percent stake in the company.