Lehman Brothers Holdings Inc said it would acquire the remaining 26.5 percent of apartment company Archstone that it didn't already own from Barclays Capital and Bank of America Corp for almost $1.6 billion, putting an end to a dispute with the banks over the price
In January, Lehman bought half the banks' stake, or 26.5 percent of Archstone, for $1.325 billion.
That came after Barclays and Bank of America struck a deal to sell the 26.5 percent stake to Equity Residential, which was also given the right to bid for the banks' remaining stake.
Lehman already owns 63.5 percent of Archstone after surrendering a portion to creditors Barclays PLC and Bank of America Corp. It will take full control when the deal closes in the next two weeks.
Archstone's ownership structure gave Lehman the right to match the offer for the first slice. Lehman bought the stake and later filed a lawsuit against the two banks in the U.S. Bankruptcy Court in Manhattan.
Under the ownership structure, unless a party has at least 76 percent stake, all important decisions regarding Archstone needed to be unanimous.
"With full ownership of Archstone, we will now be able to move forward and pursue monetization opportunities for the company," Lehman Chairman Owen Thomas said in a statement.
"This transaction protects Lehman's substantial investment, provides stability and gives us control of Archstone's future."
