Lehman Brothers to sell Neuberger unit and more
by Gill Montia
Story link: Lehman Brothers to sell Neuberger unit and more
Embattled US investment bank, Lehman Brothers, is planning the sale of 55% of its investment management business.
The business includes its prized Neuberger Berman wealth management unit and the sale could raise as much as £3 billon.
The 158-year-old bank, which is currently seen as the most vulnerable on Wall Street, is also disposing of to up to £17 billion in property assets, the UK portion of which may be acquired by private equity firm, BlackRock.
It also says it will sell its £2.3 billion UK mortgage book, much of which is subprime.
Earlier this week, shares in the bank plummeted in value on the news that its capital raising venture involving The Korea Development Bank had foundered.
The bank brought forward its third-quarter result by one week to try and quell rumours about its capitalisation but a loss of $3.9 billion did little to restore confidence.
Chairman and chief executive, Dick Fuld, now says he is examining options to maximise shareholder value, indicating that an offer for the bank would receive close consideration.
Including the third-quarter results, the bank has now written down over £7 billion in relation to the credit crisis.
Both Fitch and Standard & Poor’s have placed Lehman Brothers on negative rating watch.
Add to Bookmarks:
Related stories to: Lehman Brothers to sell Neuberger unit and more»
No comments yet.Leave a comment
Previous: « Deutsche Bank declares interest in Postbank sale
Next: Credit Suisse and Gerson Lehrman Group form alliance »
Visited 480 times, 1 so far today