Korean Bank Unlikely to Bid for Lehman

The state-run Korea Development Bank's presumed rescue of Lehman Brothers runs into opposition from South Korea's top financial regulator

South Korea's government-run bank is unlikely to pursue a takeover of Lehman Brothers (LEH) after a top financial regulator on Aug. 25 expressed opposition to such an idea. Speculation that the beleaguered U.S. investment bank will be sold and rescued, probably by Korea Development Bank (KDB), pushed Lehman shares higher by more than 15% at one point on Aug. 22 before they ended the day 5% higher on the New York Stock Exchange (NYX).

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