Replies to post #10447 on Lehman Brothers Financial SA (LEHNQ)

[toogoodfella]

Almost none or no debt since it is 100% owned now by Lehman. The real debt is the balance from the 65B distributions that will be paid by the public once they IPO it. And it should happen because they will need to pay the creditors within the allowed time... IMO.

[toogoodfella]

"it could come close to your 22B. "
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At least 22B as book value and it can trade higher.

[jshuey]

Let's look at some math:

LBH paid 1.58 billion for roughly 26% of Archstone. That would value Archstone at just a hair over 6 billion. But

Archstone has 70,000 apartment units (as compared to ER's 150,000)which are largely upscale and thus probably produce a bit higher RoR than ER, so sold as a whole or taken public it may fetch in the 8 to 12 billion range. 12 at the very most.

I doubt that Archstone is LBH's end play, but rather just another step toward it.