In July, asset manager Neuberger Berman announced its intention to be acquired by Lehman Brothers. Under the terms of the agreement, each Neuberger Berman shareholder received $42.50 per share consisting of $9.49 in cash and the remainder in Lehman Brothers common stock. Merrill Lynch successfully negotiated a detailed collar structure in order to give Neuberger Berman shareholders downside protection with respect to movements in Lehman Brothers’ common stock.
The acquisition is key to positioning Lehman Brothers as one of the industry’s leading providers of services to high- net-worth investors. The acquisition brings Lehman’s client assets under management to more than $100bn and expands its capabilities in the areas of mutual funds, wrap accounts, institutional separate accounts and alternative investments.
The acquisition represents the largest transaction in the asset management sector since 1999.
