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 ...
This highlights the magnitude of insanity that swept over entire financial sector for the last decade or so.
Ping!
We live in interesting times.
The secret seems to be out.
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.
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.
>>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.
LOL.
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