Lehman Brothers (LEH)

Lehman LEH

Postby ishak » Thu Sep 18, 2008 4:50 pm

Barclays may acquire more of Lehman
AP, 18 Sep 2008

Barclays said Wednesday it may pick up some of Lehman Brothers assets and employees in Europe and Asia, on top of the British bank's deal to acquire key US operations from the failed investment bank.

'Options, not obligations,' Group Chief Executive John Varley said of the possibility of salvaging more of Lehman Brothers businesses.

Barclays PLC, the third-largest British bank, took advantage of Lehman Brothers Holdings's bankruptcy reorganisation to reach a deal on Tuesday for Lehman's North American investment banking and trading operations for just US$250 million.

Barclays also picked up Lehman's New York headquarters and two data centres in New Jersey for US$1.5 billion, all subject to court and regulatory approval.

Barclays President Robert D. Diamond Jr. said in a conference call with analysts that Barclays' interest was primarily in the US cash equities business, as part of the company's goal to boost its earnings from North America.

'It's an absolute machine, it's extremely profitable,' Mr Diamond said.

'We wouldn't want to miss the opportunity to add some of the talent from the UK and Europe to the team,' Mr Diamond added.

'It would most typically be where Lehman has a strong position and BarCap (Barclays Capital) a weak position.' The two executives also indicated a possible interest in some assets in Asia.

In a statement earlier Wednesday to the London Stock Exchange, Barclays confirmed the deal and said that some of its shareholders had expressed interest in subscribing to at least US$1 billion of additional equity in support of the acquisition and to beef up Barclays capital base.

'The proposed acquisition of Lehman Brothers North American investment banking and capital market operations accelerates the execution of our strategy of diversification by geography and business in pursuit of profitable growth on behalf of our shareholders, in particular increasing the percentage of Barclays earnings sourced in North America,' Mr Varley was quoted in the statement as saying.

'This transaction delivers the strategic benefits of a combination with Lehman Brothers core franchise, whilst meeting Barclays strict financial criteria, and strengthening our capital ratios.'

Meanwhile PriceWaterhouseCoopers, which is administering Lehman's assets in London, said staff there would receive their September pay packets - as long as they come into work.

As Lehman works to close the sale of US assets, a bankruptcy judge in New York on Wednesday gave Lehman Brothers initial approval to sell key North American businesses to Barclays Capital for US$1.7 billion in cash.

The approval came just two days after Lehman Brothers Holdings filed the biggest bankruptcy in US history.

The judge's approval sets in motion the asset sales but leaves open the possibility of a competing bid. Lehman plans to seek final court approval Friday.

Barclays said Tuesday that it would buy Lehman's investment banking and capital markets businesses for US$250 million in cash, as well as Lehman's New York headquarters and two data centres in New Jersey for an additional US$1.5 billion.

Lawyers for creditors and bondholders objected to the speed of the process, saying two days was not enough time to evaluate the deal much less put together a competing bid.

But Judge James Peck declined to delay the approval of the bidding process and said, 'There is effectively one logical purchaser for these assets.' Lawyers for the Federal Reserve Bank of New York, the Securities and Exchange Commission and JPMorgan - which believes it could be the company's biggest creditor - supported the sale effort.

The judge also approved Lehman Brothers' request for a US$100 million breakup fee plus US$25 million in expenses to be paid to Barclays if the deal fails and a competitor wins out.

Lehman said it has made a list of 200 employees it said were 'key' to the business and another eight were determined to be 'critical' to its success. It said the retention of a majority of those employees was part of the agreement.

Under the proposed deal, Barclays would continue to employ about 10,000 Lehman employees based in the US for 90 days, or pay them severance equal to what was promised by Lehman. Lehman estimated that such severance payments would cost Barclays about US$2.5 billion.

Barclays would also pick up Lehman contracts, some of which would be transferred when the deal closes and a second group that could move to Barclays within 60 days.

Lehman also said in court filings that it was putting up its once-prized investment management unit, Neuberger Berman Holdings LLC, as collateral for a US$450 million loan to fund operations while in bankruptcy.

Barclays shares closed up 3.7 per cent in trading on the London Stock Exchange at 317.75 pence (US$5.74).
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Re: Lehman LEH

Postby LenaHuat » Thu Sep 18, 2008 5:35 pm

Loads of investors would be howling for blood when they read this on ABCNews:
Finance Fatcats Live Large as Firms Crumble

http://abcnews.go.com/Business/story?id=5821887&page=1
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Lehman LEH

Postby ishak » Thu Sep 18, 2008 10:53 pm

Clock ticking on deal for Lehman's Asia group
Reuters, 18 Sep 2008

Lehman Brothers staff in Asia remain in the dark about the fate of their business, with the clock ticking on any deal with a potential buyer.

The more time that goes by, the more likely Lehman is to lose bankers and advisory mandates to rivals.

But rival investment bankers in Hong Kong on Thursday said they expected British bank Barclays to buy all or part of Lehman's Asia business, after it agreed on Wednesday to pay US$1.75 billion to rescue Lehman's core US business.

Lehman is hoping to sell its Asian operations as one entity to maximise value and secure as many jobs as possible, but it may have to divide the business up into different geographic groups, said a source with direct knowledge of the sale, who asked not to be identified because the information is not public.

The source said Lehman was interviewing four candidates to advise it on the sale, including Goldman Sachs, Rothschild and Lazard Ltd.

'Interest for Lehman is very high,' said the source.

In terms of mergers and acquisition advisory and equity capital markets, Barclays is not a major player in Asia, while Lehman has aggressively built its investment banking presence in the region.

'I would be surprised if Barclays did not buy the Asia business,' said an investment banker at a competing bank who did not want to be identified. 'It's not going to cost them much.' Several sources familiar with the matter say that other investment banks in Asia are also looking at Lehman's business.

But no word has come yet on any such deal, and Lehman bankers are getting frustrated and nervous that the Asia group will be left to liquidate, said sources close to the bank.

Lehman, once the fourth largest US investment bank, filed for bankruptcy protection this week, having collapsed under the weight of its exposure to subprime mortgage-related securities.

Word quickly spread that Barclays may also try to save some of Lehman's European units, but nothing was said of the Asia operations.

It was not clear if Barclays had the right of first refusal to buy Lehman's Asian operations.

A Barclays spokeswoman in Hong Kong, Clare Williams, declined to comment. Lehman also declined to comment.

Opportunity, not obligation

Lehman has 3,000 employees in Asia in 10 offices - roughly 1,300 in Tokyo and 800 in Hong Kong. The Tokyo office has a large fixed income group, while Hong Kong mainly houses M&A, equity capital and debt capital bankers. In Singapore, Lehman employs 250 staffers, mostly focused on commodities and trading.

Lehman's net revenue from Asia-Pacific in the first half of the year totalled US$1.41 billion, nearly matching its haul for all of 2006 and accounting for roughly 20 per cent of the bank's overall revenues.

Barclays Group Chief Executive John Varley told analysts on Wednesday the bank had the opportunity, but no obligation, to acquire additional bits of Lehman. The bank said it would focus on areas where Lehman is strong and Barclays Capital is not.

'So it would be mostly around the equity and equity capital markets business,' Barclays President Bob Diamond told analysts on a conference call on Wednesday.

Barclays has 5,000 employees in investment banking and investment management in 11 countries in Asia. It also has retail banking networks in India and Pakistan.

As an investment bank, Barclays' Asia strength is mainly debt and derivatives. Lehman would add capability in M&A and equities.

While Barclays hired 19 M&A bankers in Asia this year, the bank does not rank on the Asia M&A league tables. Lehman Brothers ranks 2nd behind JPMorgan in year to date M&A rankings in Asia ex Japan, on 15 deals worth US$32 billion, according to Thomson Reuters.

Barclays' Asian shareholders include China Development Bank, which holds about 3 percent, as well as Singapore's Temasek and the Qatar investment authority.

KPMG has been appointed as the provisional liquidator of two of four Lehman units operating in Hong Kong.
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Lehman LEH

Postby ishak » Thu Sep 18, 2008 10:56 pm

Heads to roll over KfW transfer to Lehman: minister
Reuters, 18 Sep 2008

Heads will roll over the ill-timed transfer of 300 million euros (US$435.2 million) from German state lender KfW to Lehman Brothers on the day the US bank filed for bankruptcy protection, German Finance Ministry Peer Steinbrueck said on Thursday.

'This was incredible,' he told reporters.

His ministry had earlier described the highly publicised transfer as 'astonishing and exasperating'.
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Lehman LEH

Postby ishak » Fri Sep 19, 2008 1:06 pm

Lehman hires Rothschild for Asia unit sale
Reuters, 19 Sep 2008

Lehman Brothers has hired investment bank Rothschild to advise it on the sale of its Asia operations, a person with direct knowledge of the sale process said.

Lehman wants to sell its Asian operations as one entity to maximise value and save as many jobs as possible, but may have to divide it up into geographic groups, said the source, who asked not to be identified because the information is not public.

Rothschild was chosen out of four candidate investment banks, including Goldman Sachs and Lazard the source said, and will work on the sale of Lehman Brothers' Asia-Pacific operations, which include Japan, Hong Kong, China, Australia and other parts of Asia.

Lehman, once the fourth-largest US investment bank, filed for bankruptcy protection this week, having collapsed under the weight of its exposure to sub-prime mortgage-related securities.

British bank Barclays which agreed on Wednesday to rescue Lehman's core US business, is seen as a candidate to buy all or part of Lehman's Asia operations.
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Re: Lehman LEH

Postby winston » Sun Sep 21, 2008 6:44 pm

Hundreds of Lehman Brothers investors rally in Hong Kong

HONG KONG - Hundreds of people who made investments linked to failed U.S. investment bank Lehman Brothers have rallied in Hong Kong in hopes of securing their money.

Retirees and workers carrying investment papers marched to Hong Kong's government headquarters Sunday, chanting slogans accusing regulators of not doing enough to protect their money.

Protester Brian Fong says he invested the equivalent of more than US$150,000 in a Lehman-linked bond. He says, "I'm afraid I will lose everything."

Hong Kong's Democratic Party, which helped organized the protest, said it drew about 800 people.

Lehman Brothers did not immediately return a call seeking comment. Billions of dollars in losses from souring debt forced the bank to file for bankruptcy earlier this week. - AP
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Re: Lehman LEH

Postby millionairemind » Mon Sep 22, 2008 8:55 am

Sep 22, 2008
'Send back S$11.4 billion'

NEW YORK - LEHMAN Brothers in Europe has asked its US counterpart to give back more than US$8 billion (S$11.4 billion) that it says was trapped when Lehman's holding company filed for bankruptcy protection in New York a week ago.


Lehman Brothers International in Europe (LBIE) wants the money back even though key US operations will be transferred to Barclays, the British bank that is buying Lehman Brothers' North American banking business.

Some clients of Lehman's European arm believe they could get back more of their money if the cash is moved back to London, and they asked a US bankruptcy judge to make sure the money is not absorbed by Barclays.

The money was moved to the US in a routine transaction that happens over the weekends, according to a complaint filed as part of Lehman's bankruptcy proceedings.

After the funds moved to the US on September 12, they may not have moved back, since Lehman filed for bankruptcy - the biggest in US history - before dawn on the following Monday.

The same day as the bankruptcy filing, Lehman in Europe put itself under administration, a bankruptcy-style liquidation process that is used in the UK and elsewhere.

PricewaterhouseCoopers is the administrator in charge of winding down Lehman's European operations.

In a court filing on Friday, lawyers for Amber Capital Investment Management wrote that there's a risk the US$8 billion will be included as part of the Barclays sale.

'The proposed sale transaction with Barclays has moved at a rapid pace and parties have not had an opportunity to trace the LBIE cash and investigate the assets that are proposed to be transferred as part of the sale,' the filing said.

A lawyer for Bay Harbour Management, which has used Lehman as a prime broker, argued in court papers that the money may have been 'misappropriated.'

The lawyer, Mr David Rosner, said the money transfer 'may have been manipulated to prop up LBIE for sale,' although he said there is no way of knowing whether this was the case.

'The Barclays sale threatens to further dissipate the ability of LBIE's administrator and customers to recover their rightful property and to protect Barclays from claims to this cash,' Bay Harbour lawyers said in their filing.

Mr James Peck, the judge in Lehman's bankruptcy case in New York, said on Friday that the court would examine the issue in greater detail, but he put it aside so he could focus first on the sale of Lehman's investment banking and trading units as well as certain real estate assets to Barclays.

Mr Peck approved the sale just after Saturday midnight, and under the agreement with Barclays, the deal must close by Tuesday.

Sources reported that Japan's Nomura and Barclays might bid for Lehman's British-based equities and investment banking business. The source also reported that BNP Paribas was interested.

A spokesman for Lehman's bankruptcy law firm in the US, Weil, Gotshal & Manges, did not immediately return calls for comment on Sunday.

Further sources said the request for the funds to be returned was made in a letter sent on Wednesday, but she could not immediately provide a copy of the document.

The money would be used to pay back creditors, adding that salaries were being funded through other financing until the end of the month.

British Prime Minister Gordon Brown said his government was working with the US government to get the cash back.

While mistakes had been made in Britain, he said the primary blame for the crisis had to go to the United States, and he urged the adoption of international financial regulations.

'It's fair to say also that we're in a new world, and I think what people haven't appreciated is we've now got global financial systems but we've only got national regulators to cover them,' Mr Brown told the BBC.

'I've been pressing for some years, and I wish I could have persuaded other countries to do what I wanted, and that was to create a global system of financial regulation.' -- AP
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Lehman LEH

Postby ishak » Mon Sep 22, 2008 10:48 am

Nomura bids for Lehman Asia, Europe units: sources
Reuters, 22 Sep 2008

Nomura Holdings , Japan's largest brokerage, has bid for both the Asian and European operations of US investment bank Lehman Brothers, two financial industry sources told Reuters.

Nomura executives visited Hong Kong over the weekend to propose buying Lehman's stock broking and investment banking divisions in Asia, according to the sources, who asked not to be identified as the information is not public.

British bank Barclays, which is buying Lehman's North American banking and capital markets businesses for about US$1.7 billion, Standard Chartered and Samsung Securities Co are also interested in Asian assets.

Nomura has also submitted a bid for Lehman's European operations, the two sources said.

The sale of the Asian and European units are being handled separately, but Nomura appears to have put forth attractive offers for both, according to one of the sources.

'Nomura's proposals are the most competitive and put it in the leading position,' the source said.

Lehman Brothers last week filed for bankruptcy protection after collapsing from exposure to risky securities backed by sub-prime mortgages.
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Lehman LEH

Postby ishak » Mon Sep 22, 2008 11:16 am

Lehman sold most of US$1.87b in Nikkei futures: OSE
Reuters, 22 Sep 2008

Lehman Brothers has sold nearly all of its US$1.87 billion worth of long positions in Nikkei 225 futures, the Osaka Securities Exchange (OSE) said, lifting one cloud hanging over the stock market.

Some market participants had worried that the unwinding of those positions by the bankrupt US investment bank would depress the benchmark Nikkei share average, which the futures contract tracks.

The OSE said Lehman sold 15,500 Nikkei 225 December contracts on Friday, when the Tokyo market surged on investor relief that the US authorities were preparing a more comprehensive approach to tackle the financial crisis.

As of Sept 12, Lehman had been long by a net 15,747 contracts on Nikkei 225 December futures and by a net 250 contracts on March futures, which were worth 195 billion yen and made it the largest holder of long contracts at the time.

These positions included both those held on behalf of clients and for Lehman's proprietary trading.

Lehman Brothers last week filed for bankruptcy protection after collapsing from exposure to risky securities backed by sub-prime mortgages.

Following its bankruptcy, the Tokyo Stock Exchange and Osaka bourse have barred Lehman from entering fresh trades, but it was allowed to close existing derivatives positions.
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Re: Lehman LEH

Postby iam802 » Mon Sep 22, 2008 4:30 pm

Nomura grabs Lehman's Asia business


http://www.guardian.co.uk/business/feedarticle/7816510

- * Outbids Samsung, Barclays, StanChart - sources


-----

Note: Article keep referring to 'source'. So, officially not confirmed.
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