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Sunday, June 15, 2014

Affiliated Managers nears deal for Lehman's stake in D.E. Shaw-WSJ, (NYSE: AMG)

Investment firm Affiliated Managers Group Inc (AMG) has reached an in-principle agreement to purchase a stake in hedge fund manager D.E. Shaw & Co LP from the estate of Lehman Brothers Holdings Inc, the Wall Street Journal reported on Sunday. The deal is the latest sign of an asset manager coveting a slice of a hedge fund manager's fees as banks that have traditionally backed hedge funds retrench due to regulations implemented in the aftermath of the 2008 financial crisis.AMG has bid more than $500 million for the 20 percent stake for sale by Lehman, the financial newspaper reported on its website, citing people familiar with the matter it did not identify. A final deal is not imminent and talks could still fall apart, it added.Lehman, a U.S. investment bank whose collapse was a major contributor to the 2008 crisis, paid between $750 million and $800 million for the stake in 2007, the Wall Street Journal said.AMG and D.E. Shaw representatives did not respond to requests for comment while a Lehman estate spokeswoman declined to comment.

Affiliated Managers Group, Inc. (AMG) is a global asset management company with equity investments in a diverse group of boutique investment management firms (Affiliates). Shares of AMG fell by 0.49% or $-0.97/share to $196.97. In the past year, the shares have traded as low as $151.23 and as high as $219.39. On average, 476651 shares of AMG exchange hands on a given day and today's volume is recorded at 260322.