KKR LOOKING TO BUY NEUBERGER
Source: http://www.agustingonzalez.com/my_weblog/2008/08/kkr-looking-to.htmlPosted on Monday, August 25th, 2008 | In Stocks to Watch
KKR Indicates “High” Interest in NB.
Last week sources close to Lehman said that the asking price for Neuberger would somewhere in the $10 billion range.
A quick look at LEH as it trades today and it shows a market cap of approx $9.6 billion. Heck, the stock is pricing the investment bank plus NB even a tad bit cheaper than the asking price LEH has tagged on NB. A takeover of the entire firm could be a 2-for-1 deal: buy Lehman and we throw in a money manager for free.
Ah not so easy. If it were then it would have happened by now. The problem: if you buy the firm then you assume the downside of the toxic debt….and how do you value that? And maybe the “smart money” suspects that more bad news is still to come.
I for one will be very interested to see where LEH trades if a deal does materialize for NB.
Stay tuned, this will be interesting.
Last 5 posts by Agustin Gonzalez
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 About Agustin Gonzalez (http://agcapitalmgt.com/)
Agustin Gonzalez is Founder/Portfolio Manager of AG Capital Management in Dallas, Texas. He trades primarily domestic equities and options for his clients. Prior to starting his own firm, he advised high-net-worth clients in investment strategy and portfolio management at Merrill Lynch Global Private Client Group. Mr. Gonzalez attended the United States Air Force Academy between 1994 and 1997 before receiving an Honorable Discharge. He then graduated with a Bachelor of Science (BS) in Management Science in 2000 from the Southern Methodist University's School of Engineering and Applied Sciences in Dallas, Texas. He is also near completion of his Masters in Business Administration (MBA) from the Southern Methodist University's Cox School of Business with a dual concentration in Financial Consulting and Corporate Finance. |
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