KDB’s bid to take a 25 percent stake in Lehman could be blown apart by HSBC, reports suggest.
The Korea Development Bank’s (KDB) bid to buy a 25 percent stake in troubled US investment bank Lehman Brothers could be upset today after HSBC emerged as a potential bidder.
The deal has emerged just a day after state-backed KDB finally admitted that it was in talks with Lehman.
However, bid talks have stalled on price - the stake under discussion is reportedly worth around US$6 billion but Min Euoo-sung, the KDB Governor, admitted that his bank and Lehman “have not been able to narrow differences.”
Chosun Ilbo, South Korea’s largest daily, says that HSBC, a trio of US hedge funds and an unnamed Chinese bank may also be eyeing big stakes in Lehman.
The appearance of these new bids creates the prospect of a global battle that could leave KDB among the weaker bidders.
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