Lehman Brothers is set to spend $1.58 billion on purchasing the remaining stake of apartment company Archstone it does not already own, it has emerged.
The major US bank already maintains a 73.5 per cent proportion of the firm but has now reached an agreement to buy the other 26.5 per cent from the current holders Bank of America and Barclays, sources close to the deal have told Reuters.
Earlier this year, Lehman - which accelerated the onset of the global financial crisis by failing in 2008 - launched a bid to purchase 26.5 per cent of Archstone from its fellow banks for a sum of $1.325 billion, which resulted in a legal case regarding ownership of Archstone.
However, the financier will now buy the 13.9 per cent stake of the Bank of America as well as the 12.5 per cent held by Barclays in order to take full control of the firm.
By Claire Archer