Lehman estate could scupper Archstone deal
December 4, 2011 by: Helen Thomas in New York The estate of bankrupt Lehman Brothers believes that Archstone – the apartment company that Bank of America and Barclays have agreed to sell part of their stakes in – is worth $1bn more in equity value than the price at which the two banks have struck their deal, people familiar with the matter said. The estate is considering mounting a matching bid to derail the banks’ deal with Equity Residential , the real estate company headed by Chicago mogul Sam Zell . EQR said late on Friday that it had agreed to pay $1.325bn in cash for a 26.5 per cent stake in Archstone, which was taken private at the height of the property boom. The deal values it at about $ 16bn including debt . However, the agreement with EQR triggers a right of first refusal for the estate of the investment bank, which filed for bankruptcy in 2008, to buy the stake. People familiar with the matter said that should Lehman exercise its right to match the offer, the banks hav...
