Lehman completes $1.58 billion purchase of remaining Archstone stake

By Caroline Salls

Pittsburgh, June 6 - Lehman Brothers Holdings Inc. completed the purchase of the entire remaining stake in Archstone held by affiliates of Bank of America and Barclays Capital, giving Lehman full ownership of the company, according to a news release.

Lehman Brothers Holdings completed the purchase through its Lehman Commercial Paper Inc. subsidiary.

Lehman said this transaction follows its January purchase of a 26.5% interest previously held by the banks. The company said both acquisitions were made to protect and preserve the value of the Archstone enterprise.

As previously reported, Lehman agreed to pay the banks $1.58 billion, of which $80 million is payable by the banks to Equity Residential as a break-up fee.

Lehman said an additional $70 million termination fee will be paid by Lehman to Equity Residential.

New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company emerged from bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on March 6, 2012.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.