The plot continues to thicken around Lehman Brothers Inc. asset management unit with private equity firms Kohlberg Kravis Roberts & Co., Hellman & Friedman LLC and Bain Capital LLC circling as bidders while the investment bank continues to agonize over whether or not it should sell its crown jewel.
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The Financial Times
is reporting
that the three buyout shops have all made bids for the asset management
arm, which includes fund manager Neuberger Berman LLC and minority stakes in
several hedge funds. The FT is also reporting that the Carlyle Group
did not make it to the second round of the informal auction. Carlyle
reportedly offered $7 billion for the entire business, with Lehman
retaining the right to buy its back in the future, but the bid was
rejected as too low.
Even though Lehman needs to raise cash as it stares down the barrel of
an estimated $4 billion in write-downs this quarter, the bank has
hesitated to part with its asset management unit, seeing it as a prized
possession that could be key to Lehman's recovery.
- George White
See FT story
See Dealscape post on auction
