The second round of bids for one of
Lehman Brothers unsold assets has attracted private equity companies and vulture funds.
PricewaterhouseCoopers, which is managing the administration of Lehman in London, has set up an auction for the £900m portfolio of UK sub-prime mortgages.
Bidders in the second round are to put forward their offers by the end of January. One bidder is said to be US-based Apollo and Blackstone.
The portfolio includes Capstone, Lehman's Buckinghamshire-based mortgage services business with 450 employees.
The portfolio was built up by Lehman, and funded from the wholesale financial markets. The division was used to attract deals to Lehman's securitisation team.
Lehman used to be amongst the major players in the high-risk end of Britain's mortgage market.
