September 20, 2008 in City

Judge says Lehman can sell units

Associated Press
 

NEW YORK – A bankruptcy judge approved a plan early Saturday under which Lehman Brothers will sell its investment banking and trading businesses to Barclays.

The deal was said to be worth $1.75 billion earlier in the week but the value was in flux after lawyers announced changes to the terms on Friday. It may now be worth closer to $1.35 billion, which includes the $960 million price tag on Lehman’s Midtown Manhattan office tower.

Lehman filed the biggest bankruptcy in U.S. history Monday, after Barclays declined to buy the investment bank in its entirety.

The British bank will take control of Lehman units that employ about 9,000 employees in the U.S.

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