(June 9 – 14:25 ET) – The much-watched Heard on the Street column in the Wall Street Journal reported this morning that Fidelity Investments is contemplating a deal with brokerage house Lehman Brothers.
The two firms currently have an alliance whereby Lehman initial public offerings are made available to Fidelity’s clients. The WSJ suggests that the firms are talking about a closer alliance, or some other sort of deal. Fidelity is denying the rumour.
StreetAdvisor analyst Rick Olivere says, “With its global investment banking, trading expertise, and equity research, Lehman could further complement Fidelity1s asset management strengths.”
Whether a deal goes down or not Olivere says the rumours should at least get Lehman some much-needed attention. Olivere initiated coverage of Lehman with a US$105 target price late last month, and he reiterates that call in the wake of today’s gossip.
-IE Staff