State-owned Korea Development Bank confirmed Tuesday that it was in talks with Lehman Brothers for a possible investment in the troubled US bank, but other reports said the price of the deal remained an issue, reports Reuters.  Lehman, which has more than $60bn of mortgage and mortgage security exposure, is under pressure to raise capital ahead of its results announcement this month. Yonhap news quoted KDB chief executive Min Euoo-sung, who headed Lehman’s local operations until earlier this year, as saying the bank was in discussions to form a consortium with private banks to jointly buy Lehman, but that a pricing gap with Lehman remained.

This entry was posted by Gwen Robinson on Tuesday, September 2nd, 2008 at 5:41 and is filed under Capital markets, M&A. Tagged with KDB, Lehman Brothers. Edit this entry.