Stock Market News: Lehman Brothers Holdings Moves to Quash Rumors
Rumors have been flying that the large investment bank, Lehman Brothers Holdings (LEH), is on the verge of a meltdown on the order of Bear Stearns. Lehman, however, is taking drastic steps to quash those rumors.
Lehman has been making fundraising efforts lately in order to raise needed capital. The company has been turning to foreign investors, but is also willing accept capital infusions from U.S. investors. The Wall Street Journal reports on Lehman’s quest for capital:
Lehman indicated to at least one U.S. pension fund that it would provide the fund with nonpublic information so that the fund could consider making a direct investment in the firm. Lehman didn’t reply to requests for comment.
Getting rid of risky debt
Another move that Lehman has been making is to get rid of risky debt. In this, Lehman has already had some help. Talk Stock Trading reports on a recent bond sale by Lehman:
One buyer is Loomis Sayles, a fund manager with a portfolio of more than $100 billion in bonds. Lehman reps have also met with potential buyers at BlackRock. BlackRock merged with Merrill Lynch in 2006 and has been buying up risky debt as of late. Coincidentally, Merrill Lynch just upgraded shares of Lehman from “underperform” to “buy.”
No doubt that the upgrade will help Lehman — and help Merrill Lynch at the same time.
Other stock market news: Verizon buys Alltel
In other stock market news, Verizon (VZ) has agreed to buy Alltel. This will result in the largest cell phone service provider in the country, surpassing AT&T Wireless. Verizon is paying $28.1 billion, which includes the assumption of debt from Alltel.
Verizon is also seeing some success due to the expansion of its operations to include a mobile broadband service for laptops. The acquisition of Alltell can only spread Verizon’s influence.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
Tags: stock market, stock market news, investing blog, LEH,VZ, investments, Lehman Brothers rumors
June 10th, 2008 at 9:16 am
[…] lenders facing problems. In Britain, Bradford & Bingley continues to struggle. Additionally, Lehman Brothers Holdings, which has investments in mortgage backed securities and other vehicles related to the housing […]
June 18th, 2008 at 9:46 am
[…] Lehman Brothers continues to struggle after its earlier warnings, but it is managing to stave off a collapse reminiscent of Bear Stearns. Indeed, the hope is that Lehman Brothers will ultimately recover. […]