Latest LEH sale news - Fri eve

Discussion in 'Stocks' started by Red_Ink_inc, Sep 12, 2008.

  1. LEH Lehman Brothers investment unit gets bids from Bain, Clayton Dubilier; the bids value the unit at about $5 bln - (3.65 -0.57) -Update- reports that Lehman Brothers received bids for its asset-management unit from private-equity firms including Bain Capital and Clayton Dubilier & Rice Inc., as the investment bank seeks offers for the entire firm. The bids value the unit, which includes the Neuberger Berman fund-management business, private-equity funds and a brokerage firm serving wealthy individuals, at about $5 bln, according to people familiar with the auction who asked not to be named because the process is private. The buyout companies are angling to own a business with assets of $273 bln headed by former Goldman Sachs Group Inc. banker George Walker. Lehman Chief Executive Officer Richard Fuld sought to sell the business to save the 158-year-old firm before investors forced him to weigh a fire sale of the entire co. Representatives for Lehman and the private-equity firms declined to comment.
  2. If the bid is confirmed.. we should see lehman trading at around $6.50 - $7.50 on mondays open.
  3. They are only auctioning off the investment management unit. I don't think thats going to be enough. :(
  4. No confidence in any "Financials". You will see selling into any rally. No one believes anyone on the street right now.
  5. :D
  6. the bottom line is, what is the value minus the liability of the junk that comes with it

    nearly impossible to sort out

    that's why prudent people dont make messes like this
  7. Well at least some real #s are revealed after all day of media nonsense. If the imd is worth $5billion (real bids), that's about $7 a share assuming the rest of the firm is sold for nothing.

    But obviously the private equity cannot buy the whole company. So it will be very interesting to see how they structure the deal.

    I am not familiar with investment banking, but taking a shot in the dark, couldnt they package the imd to private equity and get $7 per share, then give the rest of the firm to boa for free, would boa take all the toxic crap plus the good stuff for free?

    I would say the numbers are pretty good so far. Lets see how it really turns out sunday night.
  8. Bain can buy w/e they want.

    It wouldn't surprise me if they did buy leh.
  9. montysky


    Well, they couldn't buy COMS... with Chinese telecom equipment maker Huawei.
  10. If Ben Graham were alive, I wonder if he'd touch anything right now, including the safer financials.

    #10     Sep 13, 2008