good for you, Lehman Brothers almost struck a deal with Korean financial institutions as part of raising $6 billion in capital, and may yet arrange one by the end of the year, the Financial Times reported on its website on Tuesday, citing people familiar with the matter. Korean institutions viewed as potential partners for Lehman include Korea Development Bank (KORB.UL), and a commercial bank such as Kookmin Bank (060000.KS), the FT reported. Potential passive investors include the Korean Pension Service and Korean Investment Corp, the FT reported.
The discussions took place in the days before Lehman said on Monday that it would raise $6 billion in capital, mainly from big U.S. investors, the paper reported. It said Lehman executives ran out of time to complete negotiations on the terms, which could have seen the institutions take their stake through buying convertible preferred shares.
Lehman officials were not immediately available for comment.
Lehman plans to raise $6 billion to bolster its capital base after losses from trading and hedging led to an expected $2.77 billion second-quarter loss.
A Korean deal would give the Korean institutions access to Lehman's capital markets expertise while giving Lehman access to the Korean groups' balance sheets and broadening the bank's reach in Asia, the FT reported.
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