Lehman in talks to sell real estate, securities
New York, August 16, 2008
Lehman Brothers is in talks for potential sale of its $40 billion portfolio of commercial real estate and securities in an effort to bolster its finances following costly credit-related write-downs, the Financial Times said in its online edition.
The investment bank wants to sell the assets either as a whole or in pieces, the FT said, citing people who have been involved in the discussions between Lehman and potential buyers.
Lehman has offered to shoulder the first $5 billion of any losses suffered on the portfolio’s assets following a sale, the sources said.
The portfolio includes mortgages and mortgage-backed securities that were valued at $29.4 billion as of May 31, the article said.
It also contains real estate assets worth $10.4 billion at the end of May, according to the report. Lehman officials could not immediately be reached for comment.-Reuters