Lehman Brothers May Have to Put Itself Up for Sale
2008-06-04 03:43 (New York)
June 4 (Bloomberg) -- Lehman Brothers Holdings Inc.'s balance-sheet troubles threaten to harm the wider financial system unless the bank takes decisive action, the Wall Street journal said in its ``Heard on the Street'' column. The company, which is likely to report a second-quarter loss this month, may be forced either to sell all or part of itself to a bigger financial firm or sell a large quantity of new shares, the newspaper said. If it were to go for the outright sale option, Lehman might, at the right price, attract interest from Blackstone Group LP, Citadel Investment Group LLC or J.C. Flowers & Co.,the Journal said.The investment bank has seen its shares fall for two days in succession and they're now 22 percent below their book value, reflecting investors' concerns about the values put on its assets, many of which are backed by poor-quality real-estate loans, the newspaper said. While a plan to sell as much as $4 billion of new stock is being considered, the share-price decline makes it harder to do that, and as Lehman's market capitalization has fallen to about$17 billion, $4 billion is equivalent to almost a quarter of the company, the newspaper said. Investors might, in any case, want the bank to raise more than $4 billion, to cover any future losses from marking downasset values, the Journal added.
| | | | | Percentage Stake | | | Stock Fall |
| | Co_Name | | Holder's Name ( 31/03/2008) | 31/03/2008 | No of Shares | Cmp | Weekly |
| 1 | Develop.Cr.Bank | 31/03/2008 | Lehman Brothers Asia Ltd | 3.04 | 5301900 | 65.3 | -18.88% |
| 2 | Spice Mobiles | 31/03/2008 | Lehman Brothers Asia Ltd | 4.41 | 3289474 | 24.65 | -18.78% |
| 3 | Prajay Engg. | 31/03/2008 | Lehman Brothers INTL Europe | 1.15 | 457701 | 192 | -17.28% |
| 4 | Edelweiss Cap | 31/03/2008 | Lehman Brothers Netherlands Horions BV | 1.8 | 1350000 | 652 | -10.78% |
| 5 | KPIT Cummins Inf | 31/03/2008 | Lehman Brothers Asia Ltd | 1.11 | 862823 | 68.2 | -10.44% |
| 6 | Anant Raj Inds. | 31/03/2008 | Lehman Brother Asia Ltd | 1.82 | 5362500 | 204.65 | -10.24% |
| 7 | Pion. Embroider. | 31/03/2008 | Lehman Brothers Intl Europe | 3.23 | 394356 | 77.85 | -10.21% |
| 8 | GTC Inds. | 31/03/2008 | Lehman Brothers Asia Ltd | 1.56 | 275000 | 188 | -9.68% |
| 9 | Prithvi Info | 31/03/2008 | Lehman Brothers Asia Ltd | 2.63 | 476160 | 150.1 | -7.12% |
| 10 | Champagne Indage | 31/03/2008 | Lehman Brothers Asia Ltd | 1.62 | 236574 | 480 | -5.63% |
| 11 | Orbit Corporatio | 31/03/2008 | Lehman Brothers Asia Ltd | 4.69 | 1700000 | 471 | -3.25% |
| 12 | Godawari Power&I | 31/03/2008 | Lehman Brothers Asia Ltd | 1.47 | 413832 | 188 | -3.09% |
| 13 | IOL Netcom | 31/03/2008 | Lehman Brothers Asia Ltd | 1.68 | 447032 | 108 | -2.70% |
| 14 | Aztecsoft | 31/03/2008 | Lehman Brothers Asia Ltd | 4.85 | 2180308 | 70.6 | -2.55% |
| 15 | West Coast Paper | 31/03/2008 | Lehman Brothers Asia Ltd | 4.37 | 2504774 | 66.9 | -1.11% |
| 16 | Indo Asian | 31/03/2008 | Lehman Brothers Asia Ltd | 1.66 | 254450 | 90 | -0.99% |
| 17 | Consolidated Con | 31/03/2008 | Lehman Brothers Asia Ltd | 1.36 | 503000 | 601 | -0.17% |
| 18 | IVRCL Infrastruc | 31/03/2008 | Lehman Brothers Asia Ltd | 1.2 | 1600000 | 386 | 1.65% |
| 19 | Spice Commun. | 31/03/2008 | Lehman Brothers Opportunity Ltd | 1.33 | 9203339 | 52.5 | 6.17% |
| | | | | | | | |
BigGains !!
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