Lehman to buy rest of Archstone for $1.58 billion
(Reuters) - Lehman Brothers Holdings Inc said it would acquire the remaining 26.5 percent of apartment company Archstone that it didn't already own from Barclays Capital (BARC.L: Quote) and Bank of America Corp (BAC.N: Quote) for $1.58 billion.
Sources told Reuters on Thursday that Lehman had reached a deal to buy the last portion of the company.
The last slice of Archstone was critical to Lehman in order to block real estate investment trust Equity Residential (EQR.N: Quote) from controlling Archstone's fate.
In January, Lehman bought half the banks' stake, or 26.5 percent of Archstone, for $1.325 billion.
That came after Barclays and Bank of America struck a deal to sell the 26.5 percent stake to Equity Residential, which was also given the right to bid for the banks' remaining stake.
But Archstone's ownership structure gave Lehman the right to match the offer for the first slice. Lehman bought the stake and later filed a lawsuit against the two banks in the U.S. Bankruptcy Court in Manhattan.
Under the ownership structure, unless a party has at least 76 percent stake, all important decisions regarding Archstone needed to be unanimous.
"With full ownership of Archstone, we will now be able to move forward and pursue monetization opportunities for the company," Lehman Chairman Owen Thomas said in a statement.
"This transaction protects Lehman's substantial investment, provides stability and gives us control of Archstone's future." Continued...