Thursday, June 12, 2008

In Lehman Fallout, Two Stars Are Given Lesser Roles

Now, it will fall to Mr. Fuld to persuade both investors and employees that Lehman is sound. He plans to meet with the managing directors in New York and London next week to try to improve morale. Lehman may yet sell part of itself to a strategic investor in South Korea, which would most likely buy the stake in the open market, said a person close to the talks.
If this happens the open market purchase of $5 billion of common stock at $20/share would require 250 Million shares or about 2 days volume which would drive the price up to over $30.