Mergers & Acquisitions
Federal Judge Blocks Bear Exec From Leaping to New Company
Posted Mar 28, 2008, 06:04 am CST
By Debra Cassens Weiss
A federal judge issued an order yesterday that bars a former Bear Stearns executive from joining Morgan Stanley.
The order by U.S. District Judge Nathaniel Gorton in Boston said Bear Stearns was likely to succeed on the merits of its case against Douglas Sharon, Reuters reports. Sharon was executive director of Bear's private client services group in Boston.
The lawsuit contends Sharon did not give the required 90-day notice before quitting. It also claims he was in the office the weekend before he resigned as others copied confidential statements.
Bear Stearns is trying to lure its executives to stay with big bonuses. JPMorgan Chase has offered to buy the company for $10 a share.