Shearson May Bring In Outsider: Shearson Lehman...
From Times Staff and Wire Reports
Shearson May Bring In Outsider: Shearson Lehman Hutton Inc. is considering bringing in an outside investor to put additional capital into the troubled brokerage firm, according to the New York Times. Under the proposal, the American Express Co., which owns 62% of Shearson, would sell part of its stake to the investor in exchange for an infusion of capital. The potential investor was not identified. American Express has long said it wanted to cut its holdings in Shearson to less than 50%. The proposal to get new capital is being reviewed to prevent a downgrading of Shearson’s bonds by Moody’s Investors Service.
