Picking Up Integrated's Pieces

Michael Steinhardt, the New York financier, is about to clinch a pretty sweet deal: taking over Chapter 11-mired Integrated Resources so he can liquidate its assets--chiefly its rich trove of rights to rental income from prime office buildings. That means potentially doubling his money in two or three years for a net gain of $24 million. And Steinhardt picks up his 12% stake at a discount of more than one-tenth off the current market price for securities of the Manhattan-based financial services company.

According to legal documents, Steinhardt has just struck an agreement with creditors' advisors to assume control, pending expected approvals by a judge and a debtholder vote. He bests the Pritzker family of Chicago and Integrated's management, whose offers the creditors' advisors felt were burdened with greater tax liabilities.

The one possible hitch is 50 lawsuits filed by limited partners in Integrated Resources real estate partnerships that turned sour. Steinhardt's associates, however, have convinced the plaintiffs' lawyer, Herbert Biegle, to urge his clients to accept a settlement that could total $18 million in cash, plus other considerations.

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