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Lehman Rallies After Report on Stock Offer

TSC Staff

Lehman Brothers(LEH) shares rallied Wednesday after a CNBC report that the investment bank plans to offer stock to employees as a means of retaining top talent.

The troubled bank's stock jumped almost 12% after the report, which investors interpreted as a sign a sale of the firm is not imminent. Rumors that Lehman was on the verge of a fire sale to Barclays(BCS) or some other suitor, a la Bear Stearns' sale to JPMorgan Chase(JPM) in March, have hit the stock all week.

Employees will receive 20% of last year's bonus in stock that vests over three years, CNBC said. Lehman declined to comment on the report.

Shares closed Wednesday up 6.7% to $22.36.