Haven't they been done for a long time?
This latest twist as outlined in the full story link below, in the never ending Lehman drama leaves one scratching their head. How the holding company of an organization that bankrupted itself in real estate, can come up with $695M for the purchase of Archstone (a real estate company), is purely baffling. The line of Lehman creditors is not short but the number of them who would prefer to see their Chapter 11 locked investments used for more investing is surely shorter. If that doesn't smell bad enough, one only has to look back to December (story link) to see that Lehman was legally maneuvering to stop this sale on the complaint that the price was too low. A price remarkable similar to what Lehman ended up paying. Do we even need to mention that Lehman is acquiring part of this stake in Archstone from Barclay's, who in 2008 bought large (albeit different) parts of Lehman?
The day that Lehman's zombie corpse is finally put down is the day that the real estate industry can get back to more productive deals.
Labels: Archstone, Barclay's, BoA, Lehman