Lehman Expects to Buy Fund Manager

Lehman Bros. Holdings Inc. said Monday that it was close to buying fund manager Neuberger Berman Inc. in a move that would reduce the investment bank’s reliance on bond trading for profit.

A agreement still might not be reached, Lehman said, but both “parties expect the final terms will be worked out over the near term.”

Neuberger Berman shares, which added 7 cents to $41.10 on the New York Stock Exchange, have soared in recent weeks on expectations that Lehman would announce a bid.

People familiar with the sale have said Lehman expected to pay about $3 billion.

Lehman shares fell 10 cents to $67.34 on the NYSE. Some investors have fretted that the firm might overpay.

“The price has raised some eyebrows; it seems to be on the high side,” said Arvind Sachdeva, who helps manage $65 billion for Cleveland-based Victory Capital Management and holds Lehman shares.

The acquisition of Neuberger, which has about $56.3 billion in assets under management, would help build Lehman’s presence in the asset management business. Commissions and fees from asset management are considered steadier than revenues from trading or underwriting.

New York-based Neuberger focuses on managing investments for wealthy individuals.