UPDATE 2-KDB, Lehman talks ended - S.Korea govt official

miércoles 10 de septiembre de 2008 07:07 CEST

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By Kim Yeon-hee

SEOUL, Sept 10 (Reuters) - State-run Korea Development Bank [KDB.UL] has ended talks with Lehman Brothers LEH.N over a possible investment in the U.S. bank due to lack of progress, a government official briefed on the matter said on Wednesday.

"No more talks are under way on a deal between the two sides," the official told Reuters by telephone, asking not to be identified before any public announcement is made.

Lehman, a casualty of the U.S. subprime mortgage crisis, has brought forward the release of "key strategic initiatives" and quarterly results by a week to 1130 GMT on Wednesday after its shares sank as much as 46 percent on Tuesday on growing concern over its ability to raise capital.

As part of Lehman's plans to raise funds, the U.S. investment bank is in talks with BlackRock (BLK.N: Cotización) to sell a package of British residential real-estate assets, The Wall Street Journal reported citing people familiar with the matter.

The Journal also said Lehman was planning to spin off some commercial real-estate assets into a new company, referred to internally at Lehman as SpinCo.

Lehman had already taken $7 billion in credit-related write-downs and losses since the start of the global credit crisis.

Asked specifically why the negotiations had broken down, the Korean official said: "Their talks had not developed to a serious level. There have been several investors who have been in discussions with Lehman other than us."   Continuación...