Korean White Horse for Lehman turns out to be a Unicorn - Nemesis nigh ? Or is that ne... ei ...igh ?
State owned Korea Development Bank (with plans to privatise by 2012) may be riding to the rescue of Lehman Bros. with global gossip suggesting a straight cash infusion - enough to boost the shares 5% on Friday.
This apparently welcome news followed hot on the heels of reports that Lehman Chief Executive Officer Dick Fuld has been eagerly (if not desperately) looking for an emergency cash boost to mainline on from an overseas bank. Some reports talk of him anxiously eyeing the exit door to follow CFO the fragrant and beautiful Erin Callan.
So far, unlike other rivals with fictional balance sheets, Lehman has yet to make any large asset sales in hopes of boosting its bleeding balance sheet.The bank has more than US $60 Bn. (£32.4 Bn) of mortgage-related assets - and the market says they are hugely undercapitalized, even insolvent.
Another day, another dollar. Lehamn Bros, closed down today 6.66% or 96 cents down @ US$13.45 (They were down to US$12 a couple of weeks ago) At the close, the Dow Jones industrial average was down 241.81 points, or 2.08 %, and the broader Standard &Poor's 500-stock index had declined 25.36 points, or 1.96 %.
Apparently normally inscrutable South Korean Financial Services Commission Chairman Jun Kwang-woo told reporters, when asked about KDB's proposed investment, "That would be an international marriage. Would you get married just after one or two blind dates?"
Cross-border acquisitions by South Korean companies should be led by the private sector, and state-run institutions such as KDB should play a "cheerleader role," Jun added and the shares dropped like a stone.
UPDATE : Tuesday Business Week Online Korean Bank Unlikely to Bid for Lehman by Moon Ihlwan. At the close shares were up 4.3% on the day @ US$14.03.
*** The pic of the lip glossed, nylon sheathed and gently sussurating thighs of Erin, as she exits her shining limo, is not added in any way, to add weight to the story but only in the sure and certain knowledge that one particular sad banker , and regular reader will now have to go and change his trousers.