Jan. 6 (Bloomberg) -- Bank of America Corp. and Barclays Plc struck a deal with Sam Zell’s Equity Residential intended to raise the price Lehman Brothers Holdings Inc. would have to pay to gain control of its largest real-estate asset, a lawyer for Lehman told a judge.
The banks, which have indicated they would accept $2.65 billion for their 53 percent stake, knew Lehman would have to “defensively” take 100 percent of Archstone by matching any higher bid made by Zell, the lawyer, Paul DeFilippo, said. The deal was structured also to make Lehman pay a so-called breakup fee to Zell’s company, he said.
Equity Residential, with a minority stake, could use its leverage to gain all of Archstone, so Lehman would have to defend itself, he said.
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