Shares in beleaguered US bank Lehman Brothers have tumbled again as concerns grow over the fate of the company.
Confidence that the investment bank will survive as an independent entity is fading as speculation about a potential takeover intensifies.
Bank of America is Investor fears hit Lehman shares ...
Spain seizes Colombia 'drug lord' ...
Cheney opens ex-Soviet state tour ...
Obama ready for historical acceptance ...
Lehman Brothers posts $2.8bn loss ... being touted as a likely saviour.
Lehman announced the biggest loss in its history on Wednesday and investors remain unconvinced by the bank's plans to strengthen its finances.
Lehman shares fell 15% to $3.58 in early trade in New York after falling around 40% on Thursday.
The company has lost 80% of its market value since Monday. Six months ago the stock was trading at $48.65.
The Financial Times reported that Bank of America is considering a joint bid for Lehman with with private equity firm JC Flowers and China Investment Co. , the Chinese sovereign wealth fund.
Concerns over the fate of Lehman follow the bail-out on Sunday of mortgage giants Freddie Mac and Fannie Mae. The lenders were thrown into financial difficulty after the collapse of the US sub-prime mortgage market.
The BBC's business editor, Robert Peston, said that Wall Street has lost confidence in Lehman's capacity to survive as an independent.
But he questioned whether any company would take the plunge and take over Lehman without some government support.
"The US Treasury may...have to provide some backstop underwriting for Lehman, so that an orderly resolution of Lehman's woes can be achieved," he said.
"When confidence in a bank erodes, it ebbs at first and then is gone in a great whoosh. Lehman will be lucky to end the day as independent bank."
(BBC)
<< Back