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Lehman Wants to Pay $2.6B for All of Archstone

CHICAGO-The firm told a bankruptcy judge Thursday that Lehman should buy the shares of the multifamily owner, keeping out Equity Residential, according to a Bloomberg story.

By Robert Carr | Updated on January 06, 2012

CHICAGO-According to a Bloomberg article this morning, Lehman Bros. has asked US Bankruptcy Judge James Peck in Manhattan to allow it to buy out its partners in Archstone for $2.6 billion. Locally based Equity Residential had contracted to buy part of the Denver-based company, but Lehman wants to keep out Equity out of the company.

Lehman owns 47% of Archstone, and has sued Bank of America and Barclays Bank, which own the majority shares, to prevent them from selling half of their interest to Equity. The Sam Zell-owned Equity had offered $1.3 billion for the 26.5% interest in Archstone, but Lehman has the right of first refusal on the deal, and has said it will buy that half interest instead for $1.3 billion. According to the Bloomberg article, the banks are arguing that Equity now has the right to try to buy the remaining 26.5% interest, and that Lehman would have to up its price to more than $1.3 billion if it wants to keep out Equity. A Lehman attorney said his firm should be able to pay the same amount for both half interests.

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