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U.S. investment bank J.P. Morgan Chase has raised its takeover offer for troubled rival Bear Stearns from two-dollars a share to about 10 dollars.
Sources close to the companies say J.P. Morgan's higher bid is meant to appease Bear Stearns shareholders who strongly objected to the lower price.
J.P. Morgan agreed to buy Bear Stearns earlier this month in a rescue deal backed by the U.S. Federal Reserve.
The New York Times says the Federal Reserve is reluctant to help finance J.P. Morgan's higher bid for Bear Stearns.
The newspaper says the central bank does not want to be seen as spending taxpayers' money to bail out a bank that should take responsibility for its own risky behavior.
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