Lehman Brothers Plans Private-Equity Spinoff

Lehman Brothers's private-equity arm has reached an agreement with its collapsed parent to spin out into an independent firm, while taking in a new investment from luxury-goods billionaire Johann Rupert, according to two people familiar with the deal.

As part of the move, Lehman estate will retain a substantial interest in the private-equity shop, called Lehman Brothers Merchant Banking. The business has $4.5 billion under management, and holds stakes in more than a dozen portfolio companies including a Spanish railcar manufacturer to a U.S. bicycle-components maker.

Read the whole story here.

Comments

[metalpipe]

Does this mean my shares in Lehman are going to worth something again?

[VivaZapata]

they live to rob another day

[Maschine]

This is how th whole fiasco should have been allowed to go down. Declare Bk then reorganize, take the medicine and get it over with.

Now we have a fake revival in stocks and more people are getting suckered in.

[2warvet]

AMEN!

These so called "bail outs" will only prolong the agony, as well as waste precious tax payer dollars!

[drzoon]

both of you....

are in way over your heads on this.... way way over your heads.

[AnnfromCA]

These guys make my head ache. Their plans and schemes are so complex.....who could follow the next nefarious move?

[Sundialsvc4]

It's not difficult, really... just watch the money. Never take your eyes off the money, no matter what is happening around you.

All of the sudden, Lehman declared itself to be broke, and dumped thousands of its employees out onto the street. Many other companies followed suit. But what happened next... to the money? Nothing. ("Stock shares" are NOT money.) The only actual movement of money was inwards... trillions of dollars of taxpayer money poured in, and disappeared. New business entities are being created and new issues of stock are coming forth from them. Meanwhile in Washington, the foxes are guarding the hen-house.

It's a swindle. Another public swindle. The actual movement of liquid cash is that a massive amount of dollars are pouring in, and it's being done in secret, and the liquidity is being dispersed into other entities and investment-offerings while the public's moon-eyed attention is being riveted on the magician's hands.

[Rule Of Law]

Dammm, this goes to show that i should write these things down when I think of them. When they were considered DOA I was talking with a friend and said that like Freddy, these guys never die and there is probably a whole closet full of money we don't know about that they'll tap to come back bigger and badder than before. Well, guess what...

[Catfish1968]

Lehman brothers are backing a lot of sketchy real-estate deals in Hawaii. Say no to the Lehman Brothers.

[WorldGoneWild]

Bernie Madoff, George H. Walker...what is the difference? I wouldn't give these crooks a dinner plate.

[rabiddog6708]

A t u r d by any other name smells the same.

[lj9283]

I guess now that the Presidents cousin cherry picked the best assets at a bargain basement price. They can work with the table scraps.

Got to keep the presidents family happy Mr. Paulson. No shenanigans here.

http://www.financialweek.com/apps/pbcs.dll/article?AID=/20081008/REG/810089997