Lehman in Talks With Government-Backed Funds
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The Wall Street investment bank Lehman Brothers was locked in talks with a group of foreign government-backed investment funds in an effort to secure billions of dollars in new equity capital over the weekend.
Lehman has intensified talks in recent days with Korea Development Bank, the South Korean government-backed lender, about a capital injection of as much as $6 billion. KDB has drafted in bankers from the heavyweight advisory boutique, Perella Weinberg, to provide counsel on the talks, which could be concluded this week. The acceleration of the negotiations, which Lehman wants to have wrapped up before it reports third-quarter earnings in mid-September, underlines the urgency with which one of the American banking industry’s most venerable names is seeking capital.
