Lehman to be sold by the government.....

[Daal]

Quote from REIT Master:

LEH has heavy employee ownership. Hard to see them selling for $1. Otherwise, wouldn't they rather just take their chances in BK if they had to (while stalling for as much time as they could)?. Something like $5 would make sense to me (I'm short Sept 2.50 puts, so I'm betting it's something higher than $2).

have a hard time seeing fuld give up his baby for discount to $3 a share. this guy has walked away from every meeting so far, could paulson and bernanke convince him?I'm not touching this stock long or short but with a gun to my head I would bet it goes higher

 

[Red_Ink_inc]

Quote from mschey:

Yeh....they got $10 per share! Leh at 3.5....you do the math!

I might be wrong about this. I believe when BSC was taken over at $10 a share that gave them a market cap of 1.3 billion.

If you give LEH a market cap of 1.3 billion you get a share price of approx $1.86.

 

[KeithOmalley]

Quote from REIT Master:

LEH has heavy employee ownership. Hard to see them selling for $1. Otherwise, wouldn't they rather just take their chances in BK if they had to (while stalling for as much time as they could)?. Something like $5 would make sense to me (I'm short Sept 2.50 puts, so I'm betting it's something higher than $2).

i allway hear that but i looked today and fuld onlys less then 1/2 of 1% of the outstanding stock. they must pay there employees with stock that they have sold big chuncks of

 

[trader_arb]

Quote from Red_Ink_inc:

I might be wrong about this. I believe when BSC was taken over at $10 a share that gave them a market cap of 1.3 billion.

If you give LEH a market cap of 1.3 billion you get a share price of approx $1.86.

why would they need to be given the same market cap?

 

[NERVESASTEEL]

Quote from mschey:

Yeh....they got $10 per share! Leh at 3.5....you do the math!

Then go for it, but JPM first only offered $1. The fact that LEH has gone to Paulson probably means that BAC (or anyone else) isn't biting ... yet. They need some additional incentives.

I don't see that LEH has much leverage here.

 

[ElCubano]

Quote from Red_Ink_inc:

I might be wrong about this. I believe when BSC was taken over at $10 a share that gave them a market cap of 1.3 billion.

If you give LEH a market cap of 1.3 billion you get a share price of approx $1.86.

that was at $2.00....i might be wrong

 

[Red_Ink_inc]

Quote from trader_arb:

why would they need to be given the same market cap?

They wouldn't. Then again why would they need to be taken over at $10...... They wouldn't.

 

[Landis82]

Quote from trader_arb:

why would they need to be given the same market cap?

He's just giving an estimate.
No big deal.

at 3.70 LEH is trading at roughly 2.7 Billion market cap.

 

[Landis82]

Quote from ElCubano:

that was at $2.00....i might be wrong

I think you are right.

They had something like 130 million shares outstanding, which is roughly 1/5th the amount of shares that LEH has outstanding.

 

[Red_Ink_inc]

I think if the government is handling this it's very serious and they won't be very concerned with getting a 'good price'. Sadly, it'll be a fire sale. That's what the stock is saying in after hours.