Lehman Wins Approval for Manager Buyout of Neuberger
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Lehman Brothers Holdings Inc. won court approval to sell its investment-management division to executives of the Neuberger Berman arm and plans to distribute the stock to creditors.
The deal, approved today by U.S. Bankruptcy Judge James Peck in New York, provides $922 million in proceeds to Lehman’s estate before a $52.5 million breakup fee, said Lori Fife, an attorney for Lehman. That is about $176 million more than the lead, or so-called stalking-horse, bid from private-equity firms Bain Capital LLC and Hellman & Friedman LLC, she said.