Lehman-India staff get a month more to work

Written by Sitanshu Swain | Mahalakshmi Hariharan | Mumbai, Sep 29 | Updated: Sep 30 2008, 07:07am hrs
Even as hectic parleys are on to find a buyer for bankrupt Lehman Brothers assets in India as soon as possible, employees of the financially battered investment bank breathed a sigh of relief as they have now got an intimation from the top management that the employees last working day would now be 31st October 2008 instead of 30th September, which was previously intimated to them.

FE had reported on the previous intimation to the employees on 18 th September 2008. Sources point out that at least names of two consultants-KPMG and PricewaterhouseCoopers are floating around which are busy in finding a suitor for the Lehman Brothers Indian assets.

PricewaterhouseCoopers has been manadated to look out for a buyer for the firms European operations.However neither KPMG nor PricewaterhouseCoopers conformed about their involvement in the exercise.

However KPMGs Hong Kong unit is roped in for some assignment, conformed the sources. Employees at the lower level are constantly being asked by their superiors not to panic as there is a strong possibility of a buyout by the Japanese investment banker, Normura.

We have been told that talks between both the top officials of both the companies are on. The acquisition might happen soon, said one of the employees working with the back office operations with Lehman Brothers, at the Powai office, Mumbai.

Last week, the Barclays team had visited the office premises of Lehman Brothers in Powai. Employees of Lehman Brothers said that right now the firm is not in a position to generate incomes. We have been told by the management that no incomes are being generated. Traders have squared off their position instantaneously, on receiving the news on the bankruptcy. However, we have been assured by the management that we would be paid full salaries for September and October, said another employee of the firm.

Apparently, on hearing the news of the collapse of LB, employees at Lehman have started hunting for other jobs. Most of the companies are ready to hire us at the same pay scale, currently what we are drawing at LB, or else are offering us a 10-20% less than what we are currently drawing, said an employee.