Lehman Brothers Holdings Inc said it has bought the remaining 26.5 percent of apartment company Archstone from Barclays Capital and Bank of America Corp for $1.58 billion.
Lehman had reached a deal to buy the last portion of the company, sources had told Reuters on Thursday.
The last slice of Archstone was critical to Lehman because for blocking Equity Residential from controlling Archstone's fate.
Under the ownership structure, unless a party had at least 76 percent stake, all important decisions regarding Archstone needed to be unanimous.
Equity Residential, whose chairman is Sam Zell, will get $150 million as a break-up fee from Lehman and the two banks.
In January, Lehman bought half the banks' stake, or 26.5 percent of Archstone, for $1.325 billion. That came after Barclays and Bank of America struck a deal to sell the 26.5 percent stake to Equity Residential. It was also given the right to bid for the banks' remaining stake.
But Archstone's ownership structure gave Lehman the right to match the offer for the first slice. Lehman bought the stake and later filed a lawsuit against the two banks in the U.S. Bankruptcy Court in Manhattan.
Gleacher & Company served as Lehman's financial advisor.
(Reporting by Tanya Agrawal in Bangalore; Editing by Joyjeet Das)