Lehman brothers stated to the press that the merger could, if consummated, "increase its high-margin high net worth and asset management businesses." According to a Reuters report, insiders are estimating that Lehman Brothers is willing to pay $3 billion for Neuberger, a price some are claiming is rather steep.
Merger rumors had been circulating, but only just recently confirmed. Last week both companies chose to keep the discussions behind closed doors. On Friday, Neuberger confirmed it was in merger discussions, but declined to name its partner in those talks.
Neuberger, which has $56.3 billion in assets under management, is a New York money management firm and provides its clients with various investment products, services and strategies. Lehman Brothers, also based in New York, offers investment and merchant banking services.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.