NEW YORK (AP) - JPMorgan Chase & Co. (JPM) (JPM) on Monday moved to assuage shareholders of Bear Stearns & Co. by increasing its offer to acquire the ailing investment bank to $10 per share from the bargain-basement price of $2 per share.

There was a backlash last week among Bear Stearns shareholders who felt the original deal undervalued the 85-year-old institution. JPMorgan Chase Chief Executive Jamie Dimon spent most of the week trying to woo Bear Stearns employees, who collectively own about a third of the company.

"We believe the amended terms are fair to all sides and reflect the value and risks of the Bear Stearns franchise," Dimon said in a statement, "and bring more certainty for our respective shareholders, clients, and the marketplace."

The new deal values Bear Stearns at about $1.19 billion - still a small fraction of what the company was worth before its sudden near-collapse earlier this month. It also includes a provision for JPMorgan to buy 95 million new Bear Stearns shares immediately, which gives it a 39.5 percent stake in Bear before shareholders have even voted.

The amended offer was Dimon's attempt to ward off any competition, and quickly move on with the acquisition. The two sides also amended certain guarantees JPMorgan made related to Bear Stearns' positions, though details of those amendments were not immediately clear.

The Federal Reserve Bank of New York's $30 billion special financing linked to the transaction has also been amended so that JPMorgan will take on the first $1 billion of any losses suffered by Bear Stearns. There was no immediate comment from the Federal Reserve.