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Lehman: The talk on the Street

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Published September 10, 2008 at 8:58 AM
lehmanbros.gifAfter 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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Here's what traders are saying on the message boards:

Yea LEH needs to sell it's assets and no buyer is around, what else is new?
If Lehman survives today then will steady climb
Top people will leave because they can't make money. Company is slowly liquidating it appears. They just need to stay around until January so Fuld can get another $70 million bonus or so.
LEH will be bought for sure. Company not as bad off as expected and suiters will be coming on strong with a $25.00 minumum bid
The spin off of the commercial real estate is a huge deal. That portfolio alone is worth 10 times the current value of LEH. This is how Mellon got through their crisis years back.
Am afraid Its gonna get crushed today... Once We get past LEH, who is gonna be next? GS?
Reply:WM or MER
Lehmans Asset Value as over $100 Billion and market people are trying to break it down but they are standing tall and trying their best to overcome worst of Finance market

Want to join in the conversation? Leave a comment below or join in the discussion on our Facebook or LinkedIn groups. - Maria Woehr

Also See:
Lehman to shed assets amid losses
Lehman rushes out earnings; posts $3.9 billion loss
Highlights from Lehman Brothers earnings conference call
Rabble Babble: Lehman = Titanic?

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Comments

From: Bobbie Bender,

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.

Posted on: September 10, 2008 10:26 AM


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