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Lehman's survival struggles continue


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Lehman's survival struggles continue

Lehman Brothers has announced plans to sell a majority stake in its investment management unit and spin off commercial property assets, but the struggling US investment bank did not give any details of specific transactions and at the same time posted a third-quarter loss of 2.75 billion euros.

Its shares failed to rebound on Wednesday after plunging by 45% on Tuesday, reflecting investors disappointment that Lehman did not announce more concrete action.

The fourth-largest US investment bank needs to rebuild its capital after being hammered by losses from the subprime mortgage crisis.

It is also planning to sell 2.8 billion euros worth of mortgages it holds in Britain to BlackRock.

Attempts by Lehman to get major investment from the state-run Korea Development Bank failed.

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