News Summary: Lehman buys Archstone stake

News Summary: Lehman estate buys Archstone stake from Bank of America, Barclays for $1.58B

Associated Press

NEW YORK (AP) -- THE DEAL: Bank of America Corp. and Barclays Bank PLC are selling their 26.5 percent stake in the apartment building owner Archstone to Lehman Brothers Holdings Inc.'s bankruptcy estate for $1.58 billion. This gives Lehman's estate full ownership of Archstone.

THE BLOCK: Lehman's offer blocks plans by Equity Residential, whose chairman is Sam Zell, to buy the Archstone stake. Equity will be paid an $80 million breakup fee from Bank of America and Barclays and a $70 million termination fee from Lehman.

THE CLOSING: The Lehman bankruptcy estate's transaction for the rest of Archstone is expected to close in the second quarter.

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