Bid talk swirls round Lehman as US banks face music
Sunday 15 June 2008
Investors are bracing themselves for a bloody week on Wall Street, with three of America's biggest investment banks, Goldman Sachs, Lehman Brothers and Morgan Stanley, expected to unveil further writedowns totalling as much as $9bn (£4.6bn).
Analysts are predicting that Goldman, which has fared well compared to many of its rivals, will post a 30 per cent fall in earnings on Tuesday. Morgan Stanley is expected to reveal a 60 per cent reduction in profits over the same period.
But it is Lehman that kicks off the reporting week on Monday, just days after chief executive Dick Fuld culled two of his senior lieutenants, chief financial officer Erin Callan and chief operating officer Joe Gregory.
Speculation is mounting that Lehman is being circled by a range of interested bidders, with reports suggesting that private equity group Blackstone could make an offer for up to 30 per cent of the firm's equity.
It has also been mooted that Lehman is speaking to banks in Korea as well as the private equity firm Flowers about possible cash injections.
Lehman received a surprise boost on Friday when fund manager BlackRock said it was backing the management of Mr Fuld.
Shareholders in the bank already know that it posted losses of nearly $3bn in the last quarter but will be looking for further details of deterioration in its mortgage book.
Shares in Lehman climbed nearly 13 per cent on Friday to close at $25.81 – around $60 less than this time a year ago.
Shares in Goldman and Morgan Stanley have shed more than a quarter and a half of their values respectively over the past 12 months.
Geoffrey Macnab reviews American Hustle, also starring Christian Bale and Bradley Cooper
newsFormer soldier taped 33 of the animals to the floor and then stamped on them one by one
Michelle Nijhuis' daughter insists (s)he is, and she learnt a valuable lesson on gender in books
news Opponents claim it would stop performers such as Beyonce and Madonna appearing on TV
It takes a platoon of chefs, litres of brandy and rum, and almost 100kg of dried fruit
food + drink
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Christmas comes early: Justin Bieber is 'retiring from music'
- 4 Iain Duncan Smith leaves Commons food banks debate early
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£500 - £650 per day: Harrington Starr: Harrington Starr is working with a Glob...
£27000 per annum: Harrington Starr: Junior Consultant (Excel, Financial Spread...
£500 - £600 per day: Harrington Starr: .NET Quantitative Developer - Contract ...
£55000 per annum: Harrington Starr: Technical Operations Analyst (UNIX, Linux,...