Lehman, investment management business buyer agree to trim break-up fee, add deadline

By Caroline Salls

Pittsburgh, Oct. 27 - Lehman Brothers Holdings Inc. has entered into a letter agreement with IMD Parent LLC that amends the company's Oct. 3 asset purchase agreement related to the sale of its investment management business, according to an 8-K filed with the Securities and Exchange Commission.

The amendment adds a termination right for the buyer if the auction for the investment management business is not held by Dec. 8. Lehman said the auction is scheduled for Dec. 3.

The amendment also reduces the potential break-up fee to $52.5 million from $70 million and reduces the amount of some bidding increments.

New York-based Lehman Brothers Holdings is the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-13555.

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