Monday, September 1, 2008

KDB to get killer price?

The rumor grows... Is KDB really this stupid?!
UPDATE 1-KDB confirms talks with Lehman on possible deal: "Britain's Sunday Telegraph reported that Lehman had intensified talks with KDB to raise as much as $6 billion in a share sale that could be concluded this week, without specifying sources.

The paper said KDB could buy up to 25 percent of the beleaguered U.S. investment house."
Why on earth would KDB buy 25% for $6B, when the current LEH market cap is $12B? Hell, they can just wait a couple of months and buy it out of bankruptcy with the blessing (and backstop) of the Fed.

No comments: