Lehman Brothers' acquisition of Neuberger Berman, both of New York, will permit the two firms to diversify and grow their combined $100 billion in assets.

The two publicly traded firms announced last Tuesday that Lehman would acquire Neuberger for $2.63 billion in a combined cash and Lehman stock deal. The agreement, which culminated weeks of rumored negotiations, also includes the creation of a $120 million retention pool for key Neuberger employees, who will be paid Lehman stock over a five-year vesting schedule, said Richard Fuld, Lehman's chairman and CEO, in a teleconference last week.

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