LONDON (dpa-AFX) - Bank of America Corp. (BAC) and Barclays Bank Plc (BCS, BARC.L) reached an agreement with Equity Residential (EQR) and Lehman Brothers Holdings Inc. (LEHMQ.PK), under which Bank of America and Barclays would sell their remaining 26.5 percent interest in Archstone for $1.58 billion to Lehman pursuant to Lehman's exercise of its right of first offer. If the sale to Lehman closes, the sellers would pay an $80 million break-up fee to Equity Residential, and Lehman would pay Equity Residential a termination fee of $70 million.
Following the transaction closure, which may occur in the second quarter of 2012, Bank of America and Barclays would have sold a 53 percent controlling interest in Archstone in two steps for a total purchase price of $2.905 billion.
Archstone, a privately-held owner, operator and developer of multifamily apartment properties, has net debt and third-party preferred securities of about $10.5 billion. As per the deal, the parties have released each other from all claims relating to Archstone.
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