Monday, September 1, 2008

Fool Me Twice

A Korean newspaper has been fed information (again!) that KDB is negotiating a Lehman stake: Worldwide: "Korea Development Bank may team with a domestic lender, probably Woori Finance Holdings or Hana Financial Group Inc., to buy a stake in Lehman, Dong-a Ilbo reported today, citing financial officials that it didn't identify.

The state-run bank is in talks with Lehman to buy a stake including management control in the fourth-biggest securities firm in the U.S., the Korean-language newspaper reported, citing the officials at KDB and South Korea's Financial Services Commission. The bank may make a decision by Sept. 10, Dong-a said."
So the old saying goes: Fool me once, shame on you. Fool me twice, shame on me.
How many fools are left to believe this rumor?

Update: Surprise! KDB has no comment on report of Lehman talks

Can somebody tell me why KDB would leak this info and drive the price UP when they are trying to purchase shares? Gimme the proverbial break.

1 comment:

Anonymous said...

LEH is in an incredibly weak position. KDB threatening to purchase 25% of the company (+ a bunch of board seats) for $9/share will drive the share price down, not up.