Legendary investor Warren Buffett may be considering buying a minority stake in the nation's fifth-largest investment bank, according to a newspaper report.
Bear Stearns is in serious talks with Buffett and several other investors, including Bankof America, Wachovia and two Chinese banks: China CITIC Bank Corp. and China Construction Bank, the New York Times said Wednesday.
The talks involve selling up to a 20 percent stake in the investment bank, according to the report.
The news sent Bear Stearns shares up $8.76, or 7.7 percent, to close at $123 on the New York Stock Exchange Wednesday afternoon. They remain down 24.4 percent this year.
Shares gave back some of those gains Thursday.
"When you have a sophisticated investor and the second wealthiest person in the universe interested in Bear Stearns, then this may be signaling that the company may be about to turn the corner," Clearbrook Financial Chief Investment Officer Tom Sowanick told Reuters, referring to Buffett.