Lehman Brothers hasn’t yet decided how it will raise the cash it insists it doesn’t need. One option is selling off its asset management unit, including Neuberger Berman, which Lehman is still pretending it doesn’t need to sell.
More importantly, Lehman CEO Dick Fuld has been so battered by the firm’s crisis that he’s conducting the negotiations himself. Why? Because he no longer trusts anyone:
FT: Lehman Brothers has told three private equity firms – Kohlberg Kravis Roberts, Hellman & Friedman and Bain Capital – that they remain in the bidding for its asset management arm even though the investment bank has yet to make a final decision on whether to sell the unit… Blackstone and Carlyle have been eliminated from the informal auction…
Lehman’s talks with private equity firms have been conducted in secret and largely directed by Dick Fuld, its chief executive. “Lehman does not trust anyone these days so it has always been direct communication,” one potential buyer said.
See Also: Feds Will Save Lehman Because CEO Fuld On NY Fed Board
Lehman Brothers Ready To Oust Hapless CEO Dick Fuld
Lehman Sick Of Stock Plummeting Every Day, May Go Private
Lehman Brothers CEO: I’ve Done a Terrible Job This Year So I Won’t Pay Myself $40 Million
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