The Korea Development Bank is said to be negotiating to buy a 25% stake in troubled US investment bank Lehman Brothers but the deal could be blown apart by the emergence of HSBC as a potential bidder, a major Korean newspaper reported today, according to The Times .
The size of the deal emerged just a day after state-backed KDB finally admitted that it was in talks with Lehman – part of what is thought to be a tacit Korean government drive to mould KDB as a global investment bank.
Sources close to the talks said that, under the terms currently being discussed, the 25% stake might eventually be raised to an interest of between 40 and 49% in Lehman.
TROUBLED LENDERS IN the UK may have tapped the Bank of England's emergency funding scheme for as much as £200bn, according to investment bank UBS - double the most aggressive estimates, The Telegraph reports.
Alastair Ryan, UBS banks analyst, has calculated that "the take-up could be £200bn or more".
When Bank Governor Mervyn King first unveiled the Special Liquidity Scheme in April he indicated that it might be used for £50bn, while debt specialists forecast a total take-up of £90bn-£100bn by the time the scheme closed on October 20.
THE $2,000bn (£1,122bn) global hedge fund industry is experiencing its worst performance in 18 years as a result of the continued credit crisis and wider economic malaise, also according to The Telegraph.
The industry, which has until now prided itself on out-performing other money managers, has become one of the many victims of the general downturn affecting financial markets.
Hedge funds are experiencing the worst returns since 1990, the year that Hedge Fund Research began tracking performance, with the average fund down by 4.7% on the year to August 28.IFAonline
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