Lehman couldn’t secure Korean Funds: report

(Reuters) –

Lehman Brothers (LEH.N) Chief Executive Dick

Fuld nearly struck a deal to raise almost $5 billion from South

Korean wealth funds and institutions but the pact

disintegrated, the New York Post said citing sources familiar

with the matter.

One source told the paper that Lehman was aiming to raise

more capital than the Korean investor was willing to invest at

the time.

The precise terms of the deal could not be learned, the

paper said.

Lehman has more than $60 billion of mortgage and mortgage

security exposure, where losses are creeping higher even on

loans to the highest quality borrowers.

The investment bank is considering selling at least part of

its asset management unit, one of its best-performing assets,

people close to the matter said on Monday.

Shares of the fourth-largest U.S. investment bank fell

13.04 percent, or $1.96, to close at $13.07 Tuesday on the New

York Stock Exchange.

Lehman could not be immediately reached for comment.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Erica

Billingham)