Crisis may be sign of things to come
Lehman Brothers Holdings Inc's collapse and Merrill Lynch & Co's takeover by Bank of America Corp are the first examples of what bankers say will be a spate of takeovers, as forced sellers seek an exit.
"There will be more bank consolidation and asset sales as people are forced to take tough decisions," said Philip Keevil, a senior partner in London at Compass Advisers LLP and former Salomon Smith Barney Inc banker.
"It will be the weak offering themselves to the strong." Barclays Plc agreed yesterday to buy Lehman's US investment banking unit for $1.75 billion, three days after abandoning plans to acquire the entire securities firm. American International Group Inc, which received an $85 billion bailout from the US government on Tuesday, is most likely to repay the loan by liquidating or selling assets, central bank staff officials told reporters on the condition of anonymity.
