Lehman Preferred Series "J" Preferred (fka LEHJQ)

[DJN]

Lehman Brothers Estate Considers Filing Claim Against Intel

http://online.wsj.com/article/BT-CO-20100723-709314.html

WASHINGTON (Dow Jones)--Lehman Brothers Holdings Inc.'s (LEHMQ) bankruptcy estate is considering filing a claim against Intel Corp. (INTC) alleging the chip giant bilked the company out of hundreds of millions of dollars around the time of its collapse.

"We believe that we acted appropriately under our agreement with Lehman, and we intend to defend any claim to the contrary," said Intel in a filing with the Securities and Exchange Commission. Intel said it was informed in November 2009 that Lehman Brothers Holdings Inc. was considering the claim, and subpoenaed Intel documents in February.

Weil Gotshal and Manges, the law firm representing Lehman's bankruptcy estate, declined to comment. A representative for Lehman did not respond to requests seeking comment.

The potential claim--which is expected to be between $130 million to $380 million--arises from a 2008 agreement between Lehman and Intel in which Lehman agreed to sell Intel 50 million shares, or $1 billion worth, of Intel stock at a future date. Intel paid Lehman $1 billion upfront, and Lehman turned over $1 billion worth of collateral.

The company filed for bankruptcy on September 15, 2008, just days before it was set to fulfill its contract with Intel, causing Intel to foreclose on the $1 billion collateral.

According to Intel, "No specific information has been provided by Lehman regarding the nature or scope of the potential claims, other than the assertion that Lehman contends that it suffered damages in a range between $130 million and $380 million."



-By Shayndi Raice, Dow Jones Newswires; 202-862-9291; [e-mail].