The Korea Development Bank looks set to buy Lehman Bros. KDB is owned -- 100% -- by the South Korean government, but plans are afoot to start a private entity called KDF. This will help "Alleviate market friction caused by KDB's expansion into the commercial banking sector (namely investment banking)" explains the bank's website. Nevertheless, the bank's policy goals include "maintaining its status as a government's important financial arm." Included in this goal is financing North Korea's developement and conducting planning for reunification. Not surprisingly, the KDB bank's fuding is overwhelmingly South Korean. Bloomberg reports today:Korea Development Bank's Chief Executive Officer Min Euoo Sung declined to comment on a Reuters report that the state-run lender is ``open to'' a potential acquisition of Lehman Brothers Holdings Inc.Yesterday, Lehman recruited Julian Cheong from Goldman to join David Kim in heading up the Asia Pacific division. Perhaps Lehman is preparing to deal with the South Koreans -- an effort to head-off the rumored hostile takeover?
Sources: Wikipedia, KDB website, Lehman Brothers
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