Lehman Bros Seeking Billions In Capital, Korean Bank Back In The Picture

September 1, 2008 6:15 p.m. EST

New York, NY (AHN) - Cash strapped investment bank Lehman Brothers has been discussing deals with many financial institutions over the weekend in their quest to raise roughly $6 billion in cash.

Government run Korea Development Bank, once rumored as a potential take-over candidate is now reportedly back in the picture. The Korea Economic Daily quoted a high-ranking government official as saying that the bank had not given up and that he was aware the two entities were maintaining a channel for dialogue.

If a deal is made, Korea Development Bank would likely buy a 25 percent stake in Lehman Brothers.

Lehman is also in talks with Chinese brokerage firm, Citic Securities for a possible deal if terms do not work out with Korea Development Bank, according to the Britain Telegraph. Lehman would like to have a deal in place before it reports third-quarter earnings in a few weeks.

According to the Associated Press, analysts are projecting losses in the third quarter for Lehman to push the $4 billion mark.

Additionally, a group of sovereign funds in the middle-east have been contacted about capital raising.