Barclays says could buy more Lehman assets

NEW YORK/LONDON (Reuters) - Barclays, after striking a $1.75 billion (978 million pound) deal to purchase Lehman Brothers' core U.S. business, said it could buy some Lehman businesses in Europe or Asia and agreed to provide bankruptcy financing to the troubled investment bank.

John Varley, Barclays chief executive, said the bank had "opportunities but not the obligation" to buy more Lehman assets, after the U.S. investment bank filed for bankruptcy protection on Monday.

Lehman also filed court documents on Wednesday seeking approval for $450 million in debtor-in-possession financing from Barclays, which would allow Lehman to continue operating as it hurries to close the sale with Barclays.

"We now have the opportunity, and it's an opportunity that we're looking at quickly and seriously, to see what else might fit with the businesses we're developing around the world," Varley told analysts on a conference call.

Bob Diamond, head of Barclays Capital, added: "It would most typically be around those areas where Lehman has strong positions and BarCap has a weak one, so mostly around equities and equity capital markets business."

He said an example would be Lehman's cash equities, where he "wouldn't want to miss the opportunity to add some of the talent from the UK and Europe to that (U.S.) team."

Meanwhile, CNBC is reporting that Lehman may sell its investment management division as soon as today.

Barclays' U.S. purchase, which is subject to bankruptcy court approval, includes Lehman's North American sales, trading, and research and investment banking businesses, as well as its midtown Manhattan headquarters and two New Jersey data centres.

Barclays purchase could save about 10,000 jobs at Lehman.