Shares in Lehman Brothers are skyrocketing this morning, up 14% as we write this, on word from Reuters that the Korean Development Bank is considering an acquisition of the “beleaguered” Wall Street firm. But could this story be a mistake?
So far no one else has been able to confirm it. Bloomberg went with a much less dramatic line, writing that KDB is “considering” an investment in the company. Not buying Lehman. Just investing in it.
Even more importantly, the Reuters story itself is strange. The talk of an acquisition comes from an unnamed “spokesman” for KDB, an unusual source for such a big story. What’s more, the operative word in the story–buying–is in parentheses.
State-run Korea Development Bank said on Friday Lehman Brothers was one of its options for acquisitions, reviving expectations that the U.S. investment bank might still bring in a large investor.
“We are studying a number of options and are open to all possibilities, which could include (buying) Lehman,” a KDB spokesman said.
Since this is presumably a translation from Korean, and people don’t, you know, actually speak in parentheses, it’s possible that this story emerged from a bungled translation.
We’re not saying this story is wrong. But we are saying it is far-fetched and more than a bit strange. Beware the bullish rumor mill, lads and lasses.
Dick Bove should be investigated for rumor mongering! And so should KDB. And Bloomberg. And Reuters. And Carney.
it’s short-rumors in reverse.
@ [my] 2:
o i see you sharpies have already figured that out.
If the Koreans buy LEH, then a soveriegn nation would have access to the Fed discount window.
fuckin awesome.
The whole thing is so strange.
put a little mayo on that fish and it won’t taste that bad.
Well, it’s just like it was with Bear, isn’t it. The stock tanks hard then mysterious sources say a buyer might emerge the rumors prove false.
You shouldn’t be able to go long unless you can borrow the shares first. This speaks of market manipulation.
Ron Paul ’08
Bloomberg ’08
The IB community wants to see a bottom worse than Richard Simmons.
I’m getting the feeling Carney tries a little too hard to froth up any negative chatter on LEH (like that Platt’s non-event that still shows up in the “top stories” to this day) and to debunk the positive rumors. Not saying the Bove / KDB fanfare isn’t bogus (there sure is a strong smell emanating from there), but what’s up with that?
@12 agreed.
Hearing Fannie and Freddie will make a joint bid for Lehman this weekend with funding lined up from IndyMac
@14 – Shake Shack is advising
@12: Moved that Platt story off the front page. Agree that it was very old. We’re going to update the poll today also.
But I assure you I don’t have it out for Lehman. If anything I have strong positive biases in favor of Lehman. Some of my best friends got their start there, and I still know lots of people there. The PR folks are honest and fair.
There’s a lot to admire about Fuld, as well. He’s a tough son of a gun who is actually performing well despite immense pressures.
I don’t think this story is all that anti-Lehman at all. Does Lehman want to be taken over by the KDB? I doubt it.
Agence France Presse says KDB denies it.
http://afp.google.com/article/ALeqM5i-UK1Skr-oOlqHl9hQsUxCxtiskg
BREAKING NEWS:
Lehman Brothers changes name to Kim Chi Brothers
- The Rumor Spreader
It’s a BS story and it was from the beginning. Why on earth would anyone telegraph a potential acquisition, sending the shares rocketing up?
I’m calling for an ugly close for financials today as people come to their senses.
Reuter got it wrong.
This conversation started with KDB’s new CEO having been country head of LEH Korea until early this year, and that head of LEH Asia (mgmt committee member) is a of a large conglomerate that owns Korean Air.
Korean papers reported interview with KDB member who ‘went through LEH books and was too shocked’ and decided to pull out. It was originally going to be syndicate deal with KDB & Kookmin Bank (large commercial bank), but now that KDB dropped out, Kookmin can’t go ahead given its +80% non-Korean shareholder base – they bought for exposure to Korean commercial banking market afterall.
KDB official’s interview with Reuter was just nice way of avoid saying ‘no f way’, to save LEH’s face – classic misinterpretation of YES/NO – whoever called KDB’s PR rep doesn’t obviously know how to make proper business conversation in Korean. Korean papers confirmed KDB dropping out anyway.
MARKET TALK can be found using N/DJMT
1:38 (Dow Jones) Could the Reuters report about Korea Development Bank still
being interested in some kind of deal involving Lehman (LEH) actually be a
mistake, John Carney asks at Dealbreaker. Bloomberg reported KDB was
considering an investment in the company, not buying it, he points out.
Additionally, the Reuters story is strange as an unnamed KDB spokesman told
Reuters they were “open to all possibilities, which could include (buying)
Lehman.” “Since this is presumably a translation from Korean, and people
don’t, you know, actually speak in parentheses, it’s possible that this
story emerged from a bungled translation,” he says. (SMR)
(http://dealbreaker.com/2008/08/this_lehman_kdb_story_is_fishy.php)
Along with the obvious attempt to create yet another short squeeze in LEH stock- like anyone involved in such a deal would make a comment on it and watch the purchase price rise before they bought it…..we now have this classic comment that destroys ANY credibility you (Carney) have remaining.
“The PR folks are honest and fair.”
HAHAHAHAHAHHAHAHAHAHAHAHAHAH
Get a cease and desist order or the tap on the shoulder?
POS
MS
Chewy @ 22,
You get kicked off TBP, your mocked at CR’s blog and now your over here attacking Carney… You might hold the record for the most IP bans on the net…
You just drive around the net picking fights with people who have an opinion… how about showing us where your blog is and we can all do a drive by there…
Oh wait, you can only dish out the heat, you cant take it…
At least the real MS could fucking drive a car… all you do is cause personal wrecks on any forum you visit…
I left TBP because Barry Ritholz refused to provide any back-up to his “stories”…since he writes very little and relies on other’s emotions to generate hits for his web-site. He makes statements from other author’s submissions. A perfect example of that is his post about Doug Kass’ “piece” regarding short sellers. You see it’s just a recycle of a WIKI post and both of them have no clue what they are talking about.
I offered to apologize to him and the readers if he could produce the post where he claimed I called him a ‘dick’…..he didn’t because it never existed.
Before the posts were removed they were viewed by some. I and those people know the truth (and so does BR) however he’s way too busy stroking himself (like you are now) to be aware of it.
“showing us a personal blog”
I’m not part of the ‘notice me’ generation obviously you are…..
Attack me all you want. Since you can’t form an argument from what I originally posted tells me all I need to know.
Now please fuck off..
MS
“now your over here attacking Carney..”
I wasn’t the one who opined that PR people (who have been strangely silent while the stock gets treated as a $2 whore) at LEH are “fair and honest” or that Dick Fuld “is actually performing well despite immense pressures.”
I’m sure LEH would be profitable if it were not for those pesky losses or “immense pressure”. He’s been in charge long enough to know better but I digress….
Carney asked for it in many different ways making with that statement.
Tootles….
MS
@16 (Carney): Yes I think LEH wants to sell a stake to KDP badly. KDB’s management is likely to be as friendly to LEH as any buyer could be, and this could actually fit into KDB’s larger strategy (although we all have to admit it would be extremely hard to execute this deal).
I think this is the analogy: a wounded financial is like a bleeding patient. Past a certain point that is obvious to most, stitches are REQUIRED! The “do nothing” approach never works. Lehman will not remain independent.
Not a true story. Wall St Journal says no, this morning.
Face saving article.
But really – no one wants to buy Lehman. We need a takeover here. Too many people are emotionally involved.
so Charles Gasparino calls Carney “a really smart guy” on CNBC shortly after the LEH piece is posted http://www.cnbc.com/id/15840232?video=829226097 it’s at 2:38 in the clip.
uh-oh. That’s all I need to hear. adios.
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