Ladenburg Thalmann & Co. analyst Richard X. Bove made waves last month for his infamous report predicting which banks are next to fail entitled "Who is next?" Now, Bove is catching attention for his latest prediction that Lehman Brothers Inc. is a candidate for a hostile takeover, according to Bloomberg.
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"Investors are unwilling to accept any positive view of the company;
management is unwilling to sell out at a deeply distressed value. The
stage is set for a hostile bid to take over the whole company," Bove wrote in his investor's note.
A big factor in Lehman's fate may be what it decides to do with its money management division, Neuberger Berman, which reportedly is worth between $6 billion and $8 billion. A deal would bring it a needed source of capital but is likely just a short-term fix for a long-term problem.
Henny Sender of the Financial Times sees the opposite side of the coin of a hostile takeover, raising a valid question of a Lehman without Neuberger Berman: "Why would any buyer be interested in Lehman? Lehman really faces an uncertain time now ..." - Gerald Magpily
See Bloomberg article
See FT.com article
See Dealscape: NatCity and Downey meet Bove's low expectations
