Lehman Brothers Holdings Inc.'s meltdown has so far had a muted effect on the auctions its capital markets group (soon to be part of Barclays Capital) was running. In fact, even as the 158-year-old investment bank was circling the drain these past weeks, its bankers managed to close a pair of auctions for a combined $1 billion plus.

As of Sept. 15, the day of its bankruptcy filing, seven of the targets that hired Lehman within the past year had yet to find a buyer or make an official decision to end the auction. As The Deal went to press, the list had been whittled to five.

Swedish healthcare equipment maker Getinge AB agreed to buy Datascope Corp. for $865 million on Sept. 15 in a deal brokered by Lehman's Douglas Solomon and Jed Brody. Earlier that day, Progress Software Corp. closed on its $162 million buy of software developer Iona Technologies plc.

Several other auctions also advanced. Ireland's Elan Corp. plc, which hired Lehman and Goldman, Sachs & Co. to review strategic alternatives in July, is reportedly seeking second-round bids for its drug delivery unit, which could fetch as much as $1.4 billion. On Sept. 10, Mexican miner Cia. Minera Autlán SAB de CV, which hired Lehman earlier this year, said it had reviewed more than 20 nonbinding offers from potential buyers including ArcelorMittal and BHP Billiton plc.

Financial sector analysts say it is probably unfair to attribute these developments solely to Lehman's bankruptcy. While the firm's implosion may have spurred some auction activity, these deals were likely in advanced stages well before that. Additionally, most of the aforementioned targets are companies whose business models can be expected to stand up under the pressure of macroeconomic and liquidity volatilities.

Conversely, Lehman auction clients in other sectors can expect to get hit by pricing pressure. Rowan Cos.' strategic alternatives process for its LeTourneau Technologies Inc. unit, which began in March, is one. Rowan executives said in August that they expected to have a deal for the unit lined up by the end of the year, and individuals close to the auction expect this schedule to hold up. "This auction is well under way and it's a simple transaction," says a managing director at an investment bank. "So I think it will probably continue." But a European analyst, who had expected the unit to fetch as much as $1.2 billion, now believes the sale price will be lower.

There have been no reports of auctions canceled as a result of Lehman's bankruptcy. A spokeswoman for CV Therapeutics Inc. says a Lehman vice president was hired as an "individual consultant" for the strategic review and that his role had nothing to do with the firm and was unaffected by the bankruptcy. Charming Shoppes Inc., which hired Lehman and Banc of America Securities LLC last month to pursue the sale of its Figi's Gifts in Good Taste catalog business, also says its auction is proceeding.

Calls to Lehman's other clients with ongoing auctions, Landmark Communications Inc. and Foot Locker Inc., were not immediately returned. A Lehman spokeswoman says the firm will continue to advise clients.

But the Lehman unit could lose some of the clients that recently hired it for strategic reviews. These targets can switch advisers provided they have not signed confidentiality agreements or paid Lehman retainer fees, an investment banker says. Examples of such companies were not immediately available, as firms generally do not disclose their investment banks of record before signing an official agreement.