
After a stock drop 45% Tuesday, Lehman Brothers Inc. rushed out its third-quarter results with an estimated net loss of
$3.9 billion, or $5.92 per share. But will investors buy in?
Management of the investment bank told investors that they will try to
sell its asset management business, which includes fund manager Neuberger Berman LLC. Potential bidders include Kohlberg Kravis Roberts & Co., Hellman & Friedman LLC, Bain Capital LLC and the Carlyle Group. Lehman expects to have bids for the unit in hand "very very soon." The bank will also sell $4 billion of its U.K. real estate holdings to BlackRock Inc. and spin off another $20 billion to $30 billion of real estate assets through a separate company to be named Real Estate Investors Global.
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Don't count Dick Fuld out. Many have before and were wrong. Challenge is greater than ever but franchise value of LEH far surpasses the "eat what you kill" culture of Bear. It ain't easy but he's my Brother, Lehamn Brother, that is.