The deal fell apart earlier this month, the Post said, with one unnamed source suggesting the sticking point was Lehman's interest in raising more capital than the Korean investors were willing to front.
Lehman is reportedly facing another loss as its third quarter comes to a close. Consequently, it is scrambling to shore up its balance sheet. Without a fresh capital infusion, the firm may be forced to sell assets. Earlier this week, the firm was rumored to have sent out separate books to gauge the interest of private equity firms in buying a stake in either its asset management business or its commercial real estate business. - Matthew Wurtzel
See story from The New York Post
See Dealscape: Lehman moves to sell Neuberger Berman
See Dealscape: Lehman may sell real estate assets
Lehman Brother Inc.'s recent change of heart over the sale of its asset management business might be related to the latest rumor surrounding the beleaguered bank. Evidently, the firm had almost struck a deal to raise $5 billion from South Korean sovereign wealth funds, the New York Post reported, citing unidentified sources.
