Wall Street traders went gaga over Neuberger Berman stock yesterday. The value of shares in the money manager jumped 9.2 percent on rumors that the firm was in play. The rumors were started by a Financial Times report that Neuberger and Lehman Brothers are in talks.
Lehman is reportedly interested in Neuberger as a way to diversify its revenue stream by adding asset management capabilities.
The price is rumored to be in the $3 billion range with the currency being stock and cash. The Wall Street Journal reports that the talks have been going “off and on” for some time and have yet to be brought before the companies’ boards.
Neuberger CEO Jeffrey Lane has told analysts in the past that he would entertain offers if the price was right. Lane himself is a 20-year veteran of Lehman He joined the Wall Street firm in 1969 and become president in 1987. He left in 1990 after he was demoted in 1989. His president’s title was then given to Richard Fuld. Fuld is now the chairman and CEO of Lehman.
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