Barclays to buy Lehman Brothers North American investment banking, capital markets business

New York, Sept. 16 - Barclays said it has agreed to buy Lehman Brothers North American investment banking and capital markets operations for $250 million in cash.

In the transaction, Barclays will acquire trading assets with a current estimated value of $72 billion and liabilities with an estimated value of $68 billion. About 10,000 Lehman employees will join Barclays.

The purchase includes supporting infrastructure. Barclays will also buy Lehman's New York headquarters at 745 Seventh Avenue and two data centers in New Jersey for $1.5 billion, close to their current market value.

Barclays said the acquisition "will create a premier integrated global bulge bracket investment banking company with a leading presence in all major markets and across all major lines of business including: equity capital markets, debt capital markets, mergers and acquisitions, commodities trading and foreign exchange."

Some Barclays shareholders are expected to subscribe for at least $1 billion of additional equity.

The acquisition is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York.

Lehman will file an emergency motion to seek a hearing on approval.

Barclays also needs regulatory approvals and U.S. antitrust clearances.

The agreement may be terminated if it is not completed by Sept. 24.

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

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