Bear Stearns Faces Conflict Claims

The FT reports that Bear Stearns is facing accusations of conflict of interest as it has now been revealed that it was a major lender to a company that it was advising a UK pharmaceutical group to purchase.

The bank seemingly provided a $225m loan facility to Medpointe, a New York based drugs company 12 months ago. It also allegedly flagged up the company as a potential purchase to another client, Shire Pharmaceuticals, and valued the business at nearly twice as much as another independent valuation.

The newspaper quotes an unnamed 'big US investor', who said: 'It's not very encouraging when there's a conflict valuation like this....Would Bear Stearns have disclosed their dual interest to shareholders'.

Bear Stearns has not as yet commented on the story.

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News