Lehman seeks court nod to raise holding in realty arm

Lehman Brothers Holdings Inc., which has approval for a $65 billion bankruptcy liquidation plan, will ask a judge to let it use $1.3 billion of the estate's money to increase its stake in Archstone, its biggest real estate asset, according to a person familiar with the planned bid.

Equity Residential, founded by Sam Zell, said on Dec. 2 that it had offered Bank of America Corp and Barclays Plc $1.3 billion for 26.5 percent of Archstone, or about half of their stake.

Lehman, which currently owns 47 per cent of Archstone and has an option to inform the banks this week that it will match the Zell company's offer, will tell the judge the investment is needed to protect the estate's interest in the company, said the person, who declined to be identified because the discussions are private.