What price to buy Lehman?

At this point I would be surprised if fuld capitulated and sold the whole thing. talk about being a contrarian, this guy is fearless, he doesn't care if he singlehandly sends the vix to 40. looks like he will only sell the stuff on his terms even if he loses his job
 
Lehman just came out and said they have no desire for gov't intervention.. then rumors came out about the gov't sale of leh through a consortium.. hmm lets read between the lines folks...
 
given what happened to BSC there is no fking way shareholders approve a deal below $4 a share. so the buyers know they might be able to push the fed around by demanding backstops but LEH shareholders know they can push the buyer around by demanding a higher price. at $2b-$3b market cap I think LEH is a little too low. they can probably find a buyer for $8b-$10b
another difference between this and fre fnm is that the SEC or the Fed doesn't have the legal authority to take them over. whatever they do they need consent of the management, so they need to convince fuld and the board to capitulate with NO liquidity problem
 
Quote from Daal:

The wildcard is what a rating agency downgrade will to do their liquidity and collateral posting requirements
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One of the most insightful comments on this thread.

Lehmans debt to capital ratio is 2300+%. This means they have 23 times the liabilities of their equity.

I think you'd have to be a moron to buy this company, because the whole theme of the financial crisis is a leverage problem, and Lehman is no different in that regard.

$0? I don't know. Neuberger is worth something.

Say they do sell their only performing asset, then what are you left with? A bunch of cash to invest in other non-performing investments. Not good.

http://www.themarketchatter.blogspot.com
 
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