Andrew Ross Sorkin, New York Times - Under the terms being discussed, JPMorgan would pay $10 a share in stock for Bear, up from its initial offer of $2 a share. Bear Stearns shares were already on the ascent before news of this re-negotiation broke, in hopes of a better deal - Up to $7 and then back down a bit above $5.

The federal government and JPMorgan Chase & Co. teamed up on a bailout of Bear Stearns Cos. on Friday, a last-ditch move to save the investment bank, which acknowledged its dire financial straits after a week of firm denials.

Bear Stearns lost half of its value within 30 minutes of the market open.