Bear Stearn's a takeover target?

Bear Stearns has been beaten up pretty good this year over its exposure to the subprime implosion and most recently its earnings. But its stock has flagged to the point now that it has a market capitalization in the $17 billion range and trades at just 1.5 times its book value. Breakingviews.com suggests that it might receive some attention as a takeover target. Certainly, Bear Stearns is a powerful Wall Street brand, one that has been upfront about its mortgage woes. You would expect the firm to work through these issues over the next year or so, if not sooner. But at this cheap price, you have to think that a deal is a possibility. That said, who would the suitors be and how would they approach it? Sell off the prime brokerage operation? It's all a bit murky, but you have to think that some bankers have at least thought about it.

Our take on the news: Bear Stearn's is a complete mess, as are numerous other firms. A complete ovehaul and shake-up is needed, as well as company culture.