After talk of a bid for Lehman Brothers by a rival firm substantially below its current price dropped the share price below $20/share it has rebounded.

But not by much. It is barely hovering above $20 after Morgan Stanley recommended the purchase of Lehman Shares stating "near-term risk of incremental write-downs is balanced by solid liquidity and capital footing". They have an overweight rating and a price target of $31 on the shares.

The reports of the possible take-under came from Businessweek on Monday. Businessweek reported the talk on the street was the UK's Barclays bank as the possible suitor after raising $8.9billion in capital, an amount thought to be more than they needed.

Lehman has repeated their no comment policy on rumors and speculation but Lehman CEO Richard Fuld in the past has stated the firm's intention to stay independent.