Lehman looking at asset management sale

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Analysts and bankers have recently said that Lehman may opt to part with its asset management business to further boost its capital. Experts estimate the business, whose core is Neuberger Berman, could be worth about $8 billion (4.3 billion pounds).

It was not immediately clear if all or part of the investment management business would be sold. Some have said an outright sale of the entire investment management business could be tough, as it would be too big for most buyers to swallow.

One source familiar with the situation said Lehman is marketing its asset management unit to a number of buyers including private equity firms.

A second source said Lehman is looking at several alternatives including selling a stake in the business, and is aiming to have the strategy resolved by the time it announces third quarter earnings.

The end of Lehman's fiscal third quarter is less than two weeks away, and the bank typically announces its third-quarter earnings in mid-September.

In June, the bank posted its first quarterly loss as a public company, of $2.8 billion.

Lehman did not immediately respond for comment.

The Wall Street Journal, quoting people familiar with the matter, said Lehman has begun circulating a detailed book on financial information about its investment management unit to a group that includes private-equity firms Carlyle Group, Hellman & Friedman and General Atlantic. Blackstone Group also has expressed interest in the business in recent weeks, the report said.

The Journal report said the Lehman unit would include Neuberger Berman, as well as the firm's private-client, hedge-fund and private-equity businesses, adding that analysts estimate the total value at around $8 billion to $10 billion.

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