The bankruptcy estate of Lehman Brothers Holdings Inc
The Wall Street Journal, which cited people familiar with the matter, said the bid Lehman was putting together was for a cash deal.
The move was designed to keep real estate mogul Sam Zell from buying a piece of the company, which owns stakes in 77,084 apartments in major cities across the U.S. and Europe.
Lehman, which already owns 47 percent of Archstone, is looking to buy another 26.5 percent in the deal.
Zell's Equity Residential
But Lehman dismissed the Equity Residential deal as too low, ill-timed and in violation of its agreements with its co-owners.
(Reporting by Mark Weinraub; editing by Anthony Boadle)