Lehman Takes a Run at Neuberger

June 2003
Investment Dealers' Digest;6/30/2003, Vol. 69 Issue 26, p4
Trade Publication
Lehman Brothers Inc. is in talks to buy Manhattan, New York City-based money manager Neuberger Berman Inc. in a deal estimated to be worth roughly $3 billion in cash and stock. Neuberger, which currently manages about $56.3 billion in assets, has its own mutual funds group and a renowned division that caters to wealthy individuals. The deal would be a coup for Lehman, which avoided the obsession of various companies for mergers, that swept through the investment banking world in the late 1990s. That caution has put Lehman in a stronger position than some rivals, which have been forced to dismiss thousands of bankers because of massive overlap, on top of unfavorable market conditions. Lehman's strong debt franchise has also kept it in relatively good shape during the market rout. But it still needs a broader base. If Lehman succeeds in closing the deal, it should be able to reduce its reliance on bond trading and underwriting. The deal would reunite Lehman CEO Richard Fuld and Neuberger's president and CEO Jeffrey Lane, who was once Fuld's superior.


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