Bear Stearns Cos. shares jumped 7.7% Wednesday after a New York Times report that the investment bank is in talks to sell a minority stake to investors including Warren Buffett.
The firm is in "serious" talks with several outside investors and could sell a stake as big as 20%, the newspaper said, citing unidentified people briefed on the discussions.
Other investors who have expressed an interest in buying a minority stake include Bank of America Corp., Wachovia Corp., and two Chinese institutions - Citic Group and China Construction Bank, the Times reported.
A Bear Stearns spokesman did not immediately respond to a phone message seeking comment.
The firm was hit hard by credit market turmoil this summer, and its shares fell to what several analysts said were attractive levels.
