Friday, September 12, 2008

Lehman in talks to sell!

Lehman Brothers Holdings Inc was forced into talks about a possible sale after the Wall Street investment bank's shares plunged more than 40 percent on Thursday, raising questions about its survival.

Lehman and U.S. regulators were in intensive discussions about a number of options, including a complete sale, but the firm was resisting government intervention, a source with direct knowledge of the talks said.

Even so, media reports said the government, including the Federal Reserve, was helping to broker a deal to sell Lehman that could be completed as soon as this weekend.

The U.S. government is hoping to avoid spending money on a bailout, a source with direct knowledge of the situation said.

Bank of America Corp or Barclays could be suitors, according to various reports. Bank of America, Barclays and Lehman declined to comment.

Lehman stock closed down $3.03 at $4.22, and traded as low as $3.20 in after-hours trading. The shares have lost more than three-quarters of their value since Monday and more than 90 percent since they hit a 52-week high of $67.73 last November.

Source: Reuters

1 comment:

Sathiya said...

Shocking news....I remember after the sale of Bear Stearns to JP Morgan, Lehman said, "Lehman no Bear Stearns".