Barclays announces 1.75 bln dlr deal to buy Lehman parts

LONDON, September 17, 2008 (AFP) – Barclays said Wednesday it had reached a deal to acquire the North American investment banking and capital markets businesses of beleaguered US investment giant Lehman Brothers for 1.75 billion dollars.

The bank said it would acquire trading assets with an estimated value of 72 billion dollars (40 billion pounds, 50 billion euros) and liabilities worth 68 billion dollars for a cash consideration of 0.25 billion dollars.

In addition, Barclays will acquire Lehman’s New York headquarters and two data centres in the state of New Jersey for a combined near market value of 1.5 billion dollars, with the total deal worth about 1.75 billion.

The acquisition would cover operations employing about 10,000 Lehman staff, and remains subject to approval by regulators and New York’s bankruptcy court, after Lehman went bankrupt on Monday.

“The board of Barclays announces that Barclays has agreed, subject to US Court and relevant regulatory approvals, to acquire Lehman Brothers North American investment banking and capital markets operations and supporting infrastructure,” it said in a statement issued in London.

Barclays, Britain’s third biggest bank, had at the weekend walked away from a merger