Barclays to Buy Lehman’s Broker-Dealer Business for About $2B
Earlier today a source familiar with the matter said that British bank Barclays has agreed to buy Lehman Brothers' core U.S. broker-dealer business for roughly $2 billion.
The deal for Lehman's broker-dealer business includes equity, fixed income, M&A advisory and other parts, according to the source, who declined to be identified.
Shares of Lehman were halted Tuesday afternoon for news pending at 19 cents, a decline of 11.43 percent. Barclays' U.S.-traded shares traded at around a 4 percent premium to Monday's close.
Barclays said earlier Tuesday it was in talks to buy some of Lehman's assets on terms that would need to be attractive to its shareholders. Lehman could not be immediately reached for comment.
A formal announcement of the pact is expected later on Tuesday or early Wednesday, the source said.
Barclays President Bob Diamond told Lehman employees in a conference call Tuesday that they "have found a partner," adding that a formal announcement will come out tomorrow.
Source: Source: CNBC | Published on September 16, 2008
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