Secret Lehman Sale Talks Fail

Secret talks earlier this month to sell up to half of struggling US investment bank Lehman Brothers to South Korean or Chinese buyers fell apart after last-minutes squabbles over details, the Financial Times reports. The bank, which is expected to announce up to $4 billion in writedowns next month, was said to be asking 50% above its book value.

Government-owned Korea Development Bank and China’s Citic Securities met with Lehman officials in New York early this month. KDB and Lehman were close to a deal before talks broke down, possibly because Lehman was seeking almost $5 billion—far more than the sovereign wealth fund wanted to invest, the Telegraph adds. Talks with Citic were more exploratory. (More Lehman Brothers stories.)