Deal Journal

Yale University

Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 9-16-2008 The Story of How Lehman's Last-Minute Korean Rescue Fell Apart Deal Journal Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Deal Journal, "The Story of How Lehman's Last-Minute Korean Rescue Fell Apart" (2008). YPFS Documents (Series 1). 11035. https://elischolar.library.yale.edu/ypfs-documents/11035 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. 6/22/2021 The Story of How Lehman's Last-Minute Korean Rescue Fell Apart - WSJhttps://www.wsj.com/articles/BL-DLB-3442 1/2This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visithttps://www.djreprints.com.https://www.wsj.com/articles/BL DLB 3442The Story of How Lehman's Last-Minute KoreanRescue Fell ApartBy Deal JournalSept. 16, 2008 10 46 am ETKorea Development Bank's attempt to buy a sizable stake in Lehman Brothers Holdingsmight have staved off the investment bank's bankruptcy filing, but the two companieswere nowhere close to agreeing on a price for a deal, the Korean bank's top executive saidTuesday.Min Euoo-sung, KDB's chief executive, said his bank proposed buying a stake in lateAugust that was larger than the 25% reported at the time. The two companies even agreedon a restructuring schedule that would reduce KDB's exposure to some of Lehman'sproblem mortgage assets by February, Min told local reporters. And when that was done,terms for a final deal would be set.But the two companies were far apart on price, with KDB offering just a third of whatLehman was seeking, he said, though he wasn't more specific. "As the gap betweenLehman and KDB didn't get smaller, it was not a situation that we could risk," Min said.Advertisement - Scroll to ContinueHe said local concerns constrained KDB's ability to come closer to the price Lehmansought, as KDB still is a government-owned and operated bank and regulators andpoliticians had little appetite for seeing KDP pay a lot for Lehman.In recent years, South Korean leaders have developed ambitions to boost the country'sbanking industry to global level, including privatizing KDB and making its DaewooSecurities subsidiary a full-service investment bank. The prospect of buying a big stake inLehman offered a shortcut to that goal in the eyes of many South Koreans.Min said KDB will keep an eye out for other acquisition targets to lift its investmentbanking capabilities. Without Lehman, his goal is to complete KDB's privatization andposition itself as one of the leading investment banks in Asia. "The fastest way to achievethat is with M&A," he said.6/22/2021 The Story of How Lehman's Last-Minute Korean Rescue Fell Apart - WSJhttps://www.wsj.com/articles/BL-DLB-3442 2/2UPCOMING EVENTSJune24202111:00 AM - 5:00 PM EDTGlobal Food ForumJune3020211:00 PM - 1:45 PM EDTWSJ Pro Cybersecurity Webinar: Aligning IT and CybersecurityJune3020217:00 PM - 7:45 PM EDTWSJ+ Live: Daniel Kahneman and His Co-Authors on the Crisis of ‘Noise’ADD TO CALENDARCopyright © 2021 Dow Jones & Company, Inc. All Rights ReservedThis copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visithttps://www.djreprints.com.--SungHa Park is a Wall Street Journal reporter in Seoul.Sign up for our new roundup of the day's Deal Journal posts, along with the latest dealnews, columns, videos and more. Plus, don't miss another deal: Click here to automaticallysign up for Deals Alert emails. (WSJ.com subscription required)

The Story of How Lehman\u27s Last-Minute Korean Rescue Fell Apart

https://elischolar.library.yale.edu/context/ypfs-documents/article/12083/viewcontent/The_Story_of_How_Lehman_s_Last_Minute_Korean_Rescue_Fell_Apart___WSJ.pdf

The Story of How Lehman\u27s Last-Minute Korean Rescue Fell Apart

Abstract

Similar works

Full text

Available Versions

Yale University