The two banks are in talks for the South Korean bank and others to take
a major stake in Lehman, although it is still unknown how big a stake
KDB is considering, nor how much it will end up paying. Lehman has also
been
reviewing bids from buyout shops
for Neuberger Berman LLC and minority stakes in several hedge funds, as it
searches for ways to shore up its capital position. Kohlberg Kravis
Roberts & Co., Hellman & Friedman LLC and Bain Capital LLC are
reportedly all in the auction, which could fetch $7 billion or more. But
even as it negotiated with the private equity suitors, Lehman has
wavered as to whether or not it wants to part with Neuberger Berman,
which is widely considered to be one of the investment bank's crown
jewels. If Lehman is able to shore up its cash position with an
investment from KDB, it could very easily decide that it doesn't need to
sell the asset just yet.
- George White
See Lehman-KDB story on TheDeal.com
See Dealscape post on Lehman auction
