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 precise terms of the deal could not be learned, the
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
Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89