Report: Private equity eyeing Lehman

As many as five private-equity firms have expressed interest in purchasing a stake in Lehman Brothers Inc.’s investment management business, according to the Telegraph, a London-based newspaper. The Carlyle Group of Washington, and KKR & Co. LP and JC Flowers & Co. LLC, both of New York, are among those believed to be interested in the business, which includes Neuberger Berman LLC of New York and some of Lehman’s private-equity and hedge fund operations. Wall Street analysts estimate the value of these businesses at between $8 billion and $10 billion, but it is thought that Lehman wants to sell only a minority stake. Last week, Korea Development Bank of Seoul, South Korea, distanced itself from comments that it was considering making a takeover offer to Lehman. Korea's financial regulator expressed concern that a potential transaction would be risky (InvestmentNewsAug. 25). Shares of the New York-based investment bank were up 26 cents, or 2%, to $13.71 in Tuesday afternoon trading. A call JC Flowers were not returned. KKR and Carlyle declined to comment.