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Saturday, July 4, 
10:27 pm

Report: More job cuts at Lehman

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Beleaguered investment bank Lehman Brothers Holdings Inc. is reportedly bracing for a new wave of layoffs. According to a New York Times item Thursday, citing someone briefed on the plans, the investment bank will distribute as many as 1,500 pink slips, trimming its workforce by 6%. Lehman shares were up 4.33% to $15.42 by 2:30 p.m.

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The cuts are expected ahead of the bank's third-quarter earnings announcement Sept. 15, and follow 6,000 layoffs since last June, The Times said, adding that it wasn't clear which divisions would be targeted. Lehman could disclose fresh write-downs of $4 billion, according to analyst estimates, so it needs to do something to shore up cash.

According to a Financial Times report Wednesday, buyout shops Kohlberg Kravis Roberts & Co., Hellman & Friedman LLC and Bain Capital LLC made bids for the bank's asset management arm, which includes money manager Neuberger Berman LLC, though Lehman may be reluctant to part with it. Another option is a deal for its commercial real estate portfolio, which the FT said last week was valued at nearly $40 billion. Bloomberg then reported Wednesday that Lehman is considering organizing a company to acquire depreciating mortgage assets tied to commercial real estate. Reports last week indicated Lehman had tried and failed to sell a stake to Asian investors. -- Carolyn Murphy

See story from the New York Times
See Dealscape: PE firms close in on Lehman's asset management unit
See Dealscape: Report: Lehman may create buyer for mortgage assets




Comments

From: John Bill,


Dear friend,

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John Bill

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