Zell And Lehman Battle For Archstone
By Mike Maher:The leveraged buyout of Archstone-Smith Trust by Lehman Brothers and Tishman Speyer in late 2007 was a deal done almost exactly at the top of the market, which saddled Lehman with crushing debt that helped push the investment bank into bankruptcy. Four years later, with a new buyer circling Archstone, Lehman is scrambling to salvage the deal, loath to give up on the company. Sam Zell, Chairman of Equity Residential (EQR), has stated that the firm's bid to buy a 26.5% stake in Archstone from Bank of America (BAC) and Barclays (BCS) is a first move in his attempt to acquire control of the company. The deal values Archstone at $16 billion, including $11 billion in debt. Up until now, Lehman Brothers, which owns 47% of Archstone, had been trying to convince its partners in Archstone that an IPO of the company, which owns more than 400 apartment complexes inComplete Story »
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