Lehman Brothers Holdings Inc. (LEHMQ), which has court approval for a $65 billion liquidation plan, will ask a judge to let it use $1.3 billion of estate money to increase its stake in Archstone, its biggest real estate asset, according to a person familiar with the planned bid.
Equity Residential (EQR), founded by Sam Zell, said on Dec. 2 that it had offered Bank of America Corp. and Barclays Plc (BARC) $1.33 billion for 26.5 percent of Archstone, or about half of their stake.
Lehman Brothers, which currently owns 47 percent of Archstone and has an option to inform the banks this week that it will match the Zell company’s offer, will tell the judge the investment is needed to protect the estate’s interest in the company, said the person, who declined to be named because the discussions are private.
Lehman Brothers filed the biggest bankruptcy in U.S. history in 2008. The cash bid was reported earlier by the Wall Street Journal.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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