Will Lehman Brothers be acquired or undergo a merger by Dec. 31, 2008?

Here's an interesting opinion relevant to this question:


Ex-IMF economist sees large U.S. bank collapsing: report
By Steve Goldstein
Last update: 4:34 a.m. EDT Aug. 19, 2008
LONDON (MarketWatch) -- Kenneth Rogoff, the former chief economist of the International Monetary Fund, reportedly said Tuesday that a large U.S. bank will collapse in the next few months. "We're not just going to see mid-sized banks go under in the next few months, we're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks," Rogoff told a conference in Singapore, according to a Reuters report

Here's what Briefing.com said today:
"Lehman Brothers (LEH 13.10, -1.93) fell 12.8% following several negative media reports, including a Wall Street Journal article that said Lehman's third quarter has turned ugly."

Here's today's story:
"Lehman nearly received $5 bln in funds from Korea: report
By Steve Goldstein
Last update: 7:01 a.m. EDT Aug. 20, 2008
LEH 13.50, +0.43, +3.3%) nearly reached a deal to raise almost $5 billion from South Korean wealth funds and institutions, but the pact disintegrated, The New York Post reported, citing sources familiar with the matter."

Here's today's story:


Stage set for hostile takeover of Lehman: analyst
By Joyce Koh
Last update: 2:29 p.m. EDT Aug. 21, 2008
Comments: 6
NEW YORK (MarketWatch) -- The stage is set for a hostile bid to takeover Lehman Brothers (LEH:

LEH 13.70, -0.03, -0.2%) , said Ladenburg Thalmann's analyst Dick Bove in a research note Thursday, as he cut his price target on the stock to $20 from $23 previously. "Investors are unwilling to accept any positive view of the company; management is unwilling to sell out at a deeply distressed value," said Bove. He cited this as a reason why reported negotations with foreigners to buy a stake in Lehman fell through. But Bove said a deep pocket buyer could wait until assets mature before they sell them, and could hence sell Lehman's investment management unit Neuberger Berman for more than the value of the whole company and then basically own Lehman Brothers for nothing. He concluded in his note: "Will it happen? I do not know. Should it happen? Absolutely, opportunities like this are rarely evident in the markets."

As I read the Hubdub rules, in order for this to settle as "Yes" any acquisition or merger would have to be completed by December 31, 2008 -- an announcement would be insufficient.

"2.3.3.4 Business Category

* Unless otherwise specified, questions asking whether company X will be acquired (or merge with company Y) by date Z will be settled on completion of the deal, not on announcement."

I'll leave it up to the Category Editor, but stories released this morning indicate that this would not happen until the first quarter of 2009.

"The assets will be separated in a publicly traded company in the first quarter of 2009."

http://www.reuters.com/article/topNews/idUSN1040161420080910?virtualBrandChannel=10284

Always gets to be a tough call when we're talking about takeovers, mergers, and such...from my point, the question stands right now, and if
Lehman Brothers survives the year without being 'taken over"
or acutally "merging" with another company, then it would be settled as a no. But things might get ugly and even though they have PLANS to do certain things in the first quarter of 09, they still might not make it until then...So far, keep it open, not ready for a suspension or settlement...

Yo can't do anything in Chapter 11.

OK...so as it stands Lehman is in bankruptcy (chapter 11)
and has not merged or been acquired by anyone else.

So the question can not yet be settled, or can it?

Lehmans is in bankruptcy protection (chapter 11) which usually ends up with an asset sale and the revenues going to pay of dept and if extremely lucky, to pay off shareholders. It would be unlikely that Lehmans will be 'sold' as whole, or emerge from this as a company. But it's going to be complicated to work out how to define the yes/no on this...

i have no money in this market. just a comment..these merger questions are tough to settle. they have rules pertaining to merger's - acquisition's (see comment 5) they still end up suspended for long perods of time and usually with people unhappy. how many mergers go smoothly and are over in a reasonable amount of time? even if both parties envovled are for the merger it takes a long time to complete. i ain't smart enough to have a good solution. my suggestion would be a meeting of the HD admins-big chiefs to work something out. annoucements don't settle (for good reason imho) and by the time the merger actually takes place its usually long after the suspend time. i think their news worthy, but might need placed on hold till a better way of settling them can be worked out. lehmans could be in chapter 11 for years, or as unlikely as it might be somebody could buy them next week. goodluck betters and admin.

Looks like Barclays is buying some of Lehman Brothers assets - FT: http://www.ft.com/cms/s/0/5c9dcc26-83f1-11dd-bf00-000077b07658.html?nclick_check=1

If this question had been phrased as, "Will Lehman still be functioning as an independent company by year-end?" there'd have been less ambiguity.

Headline on a story an hour ago: "Nomura gets Lehman's Asia business". The story also mentioned that Barclays and Nomura were bidding for Lehman's European offices.

Buffet's investment in Goldman makes it likelier that someone will swoop in and pick up the remaining pieces of Lehmans.