Lehman Brothers has priced a $4.0 billion offering of convertible preferred shares that boosted its common stock price to levels above $40 Tuesday morning from a Monday close just over $37. The preferred shares are convertible at the option of the holder into a specified amount of common stock at an initial conversion price of about $49 per common share. Rumors about the effect of the U.S. mortgage-sparked credit crunch on certain Wall Street players have put downward pressure on Lehman's stock price in the wake of the Bear Stearns merger deal with JPMorgan Chase. Lehman has a policy of not commenting on market rumors.
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