Lehman plans to raise further $6bn after losses
CV Starr has emerged as one of a number of candidates targeted by Lehman Brothers to buy a stake in the credit crunch-hit investment banking giant.
Lehman today unveiled plans to raise $6bn in fresh capital as it said it expects to post a second-quarter loss of around $2.8bn, significantly higher than analysts’ expectations.
The capital raise, higher than the $4bn analysts predicted last week, will come primarily from common shares – the first such issue since the bank went public in 1994.
The group raised $4bn in an April preference share issue and has not commented on any further capital-raising schemes.
Former AIG chairman and CEO, Hank Greenberg’s investment vehicle CV Starr is among a number of asset managers and Asian banks that have been linked with a deal.
In April, Lehman announced it had priced the $4bn stock offering for four million shares after receiving “substantial interest from several key long-term clients and institutional investors”.
Erin Callan, MD and CFO of Lehman Brothers, said: “The significant oversubscription for this deal demonstrates the confidence that investors have in Lehman Brothers.
“The success of the transaction is also reflective of the strength of the business model, the capital base and liquidity profile of the firm as we continue to successfully weather challenging environments.”