Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

SKorea bank mum on Lehman

SEOUL, September 1 – South Korea\’s state-run Korea Development Bank refused comment Monday on a British newspaper report that it is still seeking a stake in troubled US investment bank Lehman Brothers.

The Sunday Telegraph said Lehman is close to raising as much as six billion dollars from KDB in exchange for a stake.

Lehman hopes to conclude talks with KDB this week but is also working on alternative plans with Chinese brokerage Citic Securities or sovereign wealth funds from Abu Dhabi and Qatar, the newspaper said

South Korea\’s Financial Services Commission said KDB has not submitted a plan to it about buying a stake in a global bank.

"We are aware that KDB is reviewing a plan to invest in a global investment bank, but nothing has been decided," commission vice chairman Rhee Chang-Yong told Dow Jones Newswires.

He said KDB, set up in 1954 to finance the nation\’s industrial and economic development, was considering a possible investment in Lehman Brothers as well as other global banks.

"If there is a decision made by KDB, it will have to seek regulatory approval on any large investment. But the government can\’t grant approval in just a day or two," said Rhee.

Lehman Brothers suffered billions of dollars in writedowns and credit losses in the financial crisis triggered by the meltdown in the US subprime mortgage sector.

A local newspaper reported last month that South Korean banks led by KDB had shelved plans to buy a stake and management rights in Lehman due to concerns about its financial health.

Advertisement. Scroll to continue reading.

But the Chosun Ilbo newspaper said the bid may be resurrected.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...