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Expected Buyout of Select CIBC Operations Throws More New York Property Into Speculation Zone

NEW YORK CITY-As rumors of CIBC Oppenheimer's plans to sell its retail operations to Lehman Brothers becomes accepted fact, some wonder if the deal will free up any retail and office space.

By Amy Vaughn | Updated on September 28, 2000

NEW YORK CITY-Published reports, neither confirmed nor denied by spokespeople for either company, that Lehman Brothers is negotiating with CIBC Oppenheimer over the acquisition of CIBC retail operations and possibly investment banking have led to hypothetical debates over the deal’s impact on space in the city. This is one of several bank merger and acquisition deals that have people talking space availability.

Lehman Brothers reportedly does not have a significant retail presence and is seeking CIBC’s 600 brokers and their wealthy clients. Additional rumors indicate that Lehman is also eagerly seeking CIBC’s investment banking operations. These operations would be an overlap of Lehman’s with the noted exception in the area of high-yield, in which CIBC apparently excels.

“What becomes of the real estate property in deals like this depends on the duplication of facilities,” observes Peter Brooks, a principal for Ernst & Young. “In this case it doesn’t seem like there’s much overlap, which generally means they’ll maintain the retail and support office space.”

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