Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Lehmanís secret talks to sell 50% stake stall (approached S. Koreans and Chinese)
FT ^ | 08/20/08 | Henny Sender and Francesco Guerrera

Posted on 08/20/2008 9:14:12 PM PDT by TigerLikesRooster

Lehman’s secret talks to sell 50% stake stall

By Henny Sender and Francesco Guerrera in New York

Published: August 20 2008 23:30 | Last updated: August 20 2008 23:30

Lehman Brothers, the beleaguered US investment bank, held secret talks to sell up to 50 per cent of its shares to South Korean or Chinese parties in the first week of August but failed to reach agreement with either.

The South Koreans and Chinese walked away after concluding that Lehman was asking too high a price, said New York-based people familiar with the potential buyers. Lehman declined to comment.

The talks reflect the growing pressure on Dick Fuld, Lehman’s chief executive, to raise capital ahead of the mid-September earnings report, which, analysts said, could include more writedowns of $4bn (£2bn), bringing the total so far to $12bn. Lehman shares have fallen nearly 85 per cent since early 2007 and its market value is now about $9.5bn.

In addition to selling a stake in itself, Lehman is considering selling all or part of its holdings, including its troubled $40bn commercial real estate portfolio and its asset management arm, which includes Neuberger Berman. Analysts said the asset management arm was the crown jewel that could be worth up to $10bn.

In the first week of August, Lehman held parallel talks with the government-owned Korea Development Bank and China’s Citic Securities at its headquarters in New York’s Times Square area.

(Excerpt) Read more at ft.com ...


TOPICS: Business/Economy; Extended News; Foreign Affairs; News/Current Events
KEYWORDS: banks; china; economy; globalism; housingbubble; korea; lehman; sale
If anybody suggested, back in 1997 when Asian financial crisis walloped S. Korea, that Lehman Brothers would be knocking on S. Koreans and ask them to buy 50% of its share in 2008, he would be laughed out of the place. If he were working in financial sector, he could have lost his job for entertaining such an 'irrational idea.'

This highlights the magnitude of insanity that swept over entire financial sector for the last decade or so.

1 posted on 08/20/2008 9:14:12 PM PDT by TigerLikesRooster
[ Post Reply | Private Reply | View Replies]

To: TigerLikesRooster; Uncle Ike; RSmithOpt; jiggyboy; 2banana; Travis McGee; OwenKellogg; 31R1O; ...

Ping!


2 posted on 08/20/2008 9:14:46 PM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TigerLikesRooster

We live in interesting times.


3 posted on 08/20/2008 9:16:33 PM PDT by durasell (!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TigerLikesRooster

The secret seems to be out.


4 posted on 08/20/2008 9:29:58 PM PDT by eyedigress
[ Post Reply | Private Reply | To 1 | View Replies]

To: TigerLikesRooster

Note to Lehman:

Next time, don’t use billions of your capital to provide loans to people with no documentation, no collateral, no stated income, and no proof of citizenship.


5 posted on 08/20/2008 10:10:51 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Proud_USA_Republican

I worked for Dickie Fuld. He always struck me as little more than a blustering trader. He certainly wasn’t the brightest man I have ever met. If you ask me, it was little Joe who had the get up and go but when the sh*t hit the fan, Joe threw himself under the bus to save Dickie.


6 posted on 08/20/2008 10:38:28 PM PDT by johnnycap (I would really like the model of Civil Forum that Warren has created to be repeated across the count)
[ Post Reply | Private Reply | To 5 | View Replies]

To: TigerLikesRooster

>>Lehman Brothers, the beleaguered US investment bank,

Greedy NyLon vampires are reaping what they have sown. Should have stayed out of the SupPrime bidness... and avoided the tainted blood.

They, and those who E!mpowered them, have nobody to blame for their misfortunes but themselves.


7 posted on 08/21/2008 8:26:04 AM PDT by LomanBill (A bird flies because the right wing opposes the left.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LomanBill
NyLon vampires

LOL.

8 posted on 08/21/2008 8:31:30 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
[ Post Reply | Private Reply | To 7 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson