Lehman Matches Zell’s $1.33 Billion Bid for Archstone Stake

Lehman Brothers Holdings Inc. told Bank of America Corp. and Barclays Plc it would buy half their stake in Archstone, owner of apartments in the U.S. and Germany, for $1.33 billion, matching an offer by Equity Residential, according to a person with knowledge of the deal. Lehman mailed its offer to the banks last night, meeting a deadline to exercise its right to buy the stake, said the person, who asked not to be identified because the process is confidential. The purchase of 26.5 percent of Archstone is a bid by Lehman to get control of its biggest real estate asset.

The bankrupt securities firm, which has approval for a $65 billion liquidation plan, will ask a judge to let it use some of the Lehman estate’s cash to increase its stake in Archstone to 73.5 percent from 47 percent with the cash offer, according to another person familiar with the plans.