Lehman to be sold by the government.....

have a hard time seeing fuld give up his baby for discount to $3 a share. this guy has walked away from every meeting so far, could paulson and bernanke convince him?I'm not touching this stock long or short but with a gun to my head I would bet it goes higher

 

I might be wrong about this. I believe when BSC was taken over at $10 a share that gave them a market cap of 1.3 billion.

If you give LEH a market cap of 1.3 billion you get a share price of approx $1.86.

 

i allway hear that but i looked today and fuld onlys less then 1/2 of 1% of the outstanding stock. they must pay there employees with stock that they have sold big chuncks of

 

why would they need to be given the same market cap?

 

Then go for it, but JPM first only offered $1. The fact that LEH has gone to Paulson probably means that BAC (or anyone else) isn't biting ... yet. They need some additional incentives.

I don't see that LEH has much leverage here.

 

that was at $2.00....i might be wrong

 

They wouldn't. Then again why would they need to be taken over at $10...... They wouldn't.

 

He's just giving an estimate.
No big deal.

at 3.70 LEH is trading at roughly 2.7 Billion market cap.

 

I think you are right.

They had something like 130 million shares outstanding, which is roughly 1/5th the amount of shares that LEH has outstanding.

 

I think if the government is handling this it's very serious and they won't be very concerned with getting a 'good price'. Sadly, it'll be a fire sale. That's what the stock is saying in after hours.