Lehman Brothers (LEH) will not sell its asset management group Neuberger Berman, says the New York Post. CNBC reported last week that Lehman was considering the sale to bolster its capital position. The deal would be worth about $8 billion, compared to Lehman’s total market cap of $12 billion. Post:
A sale of the investment bank’s subsidiary isn’t likely to happen, at least not any time soon, according to sources familiar with the embattled investment bank’s thinking.
Lehman, these sources said, still believes its Neuberger business, which it acquired about five years ago, makes strategic sense and adds to the New York firm’s mix of services, especially in light of the headaches in the firm’s fixed-income shop.
Neuberger contributes more than $2 billion to Lehman’s net revenue of nearly $20 billion, and the asset-management outfit has been a steady performer during what have otherwise been harrowing times.
What’s more, the Neuberger business allows Lehman CEO Dick Fuld to argue that the firm has more arrows in its quiver besides being a mere bond shop, these sources noted.
Lehman refused to comment.
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