Barclays: Sorry, Lehman, Your Building Is Worth a Lot More Than Your Bank

London-based Barclays (BCS) will buy more of Lehman Brothers (LEH) than previously expected. In addition to Lehman's fixed income, equities, trading, research and investment banking businesses in North America, Barclays will also acquire "select operations" outside the US. Barclays is thought to be targetting Lehman's European I-banking group.

Separately, Lehman is trying to pawn off its investment-management businesses, including Neuberger Berman, to either Bain Capital or Neuberger Berman. Bloomberg:

Barclays will pay $250 million in cash for Lehman's North American operations and $1.5 billion for the real estate, the company said in the statement. The bank plans to raise at least 600 million pounds in a stock sale to help fund the deal.

"The money they are raising may allay concerns that they may not have had enough capital to do this deal,'' said Leigh Goodwin, a London-based analyst at Fox Pitt Kelton Ltd.

Lehman Chief Executive Officer Richard Fuld said in a statement that the deal with Barclays ``is a wonderful outcome for a great number of our employees.'' Lehman employed about 25,000 people before it unraveled.

We may be splitting hairs here, but nothing about that has happened to Lehman Brothers under Dick Fuld should be described as "wonderful," even if it's better than many were expecting. What would have been "wonderful" would be employees and shareholders not seeing their bonuses and savings evaporate before their eyes.