POLL: Do you think Lehman will get acquired?
Best Answer
299 points
thinker70 answered 3 months ago …
IF it dosen't end up bankrupt first! The credit crisis is FAR from over, there could still be billions of writedowns lurking in the background, and not just for Lehman!
In my view the biggest stock market profits over the next 3-6 months will be made buying PUTS on the financial industry in spite of the TEMPORARY surge of the U.S. dollar and positive spin put out by Wall St. that the WORST is over. Myron Martin
Answers
268 points
ChuckF answered 3 months ago …
Maybe not acquired outright but I know the Korean Development Bank is interested in investing or outright acquiring Lehman. Then again, this company has been bought, sold and flipped so many times in its history that it might just be time for it to be bought up again.
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2703 points
MNSL answered 3 months ago …
I think most probably Korean Bank will acquire Lehman. or they will invest. They will think long-term view.
I do not know for some reason some investors like to invest in big names. That is why even Middle East sovereign wealth funds invested in Citi Bank. There are happy with purchase price because they know they are buying for beaten down prices in a depressed market. They also know when it recover they can make above average returns.
In addition, we must not forget as some big market players have invested in these big names. through out the world. When they see their share prices are coming down badly they like to support their share prices.
In the case of South Korea, they had a worst experience in financial sector .than now when they caught in the East Asian currency turmoil. Finally, they came back strongly and some of their companies have become world leaders now.
Who knows once they acquire Lehman they will make use their experience, marketing ability and business knowledge to make turnaround this bank. Being closer to China and other Asian countries Korean Bank will make use Lehman’s resources to the maximum benefit in the next decade and beyond.
I also think they must have realized that US Dollar is going to appreciate with other currencies in the next 18 months. In addition, to some sort of market rally towards end of 2008.
They also must have realized drop in commodity prices including oil prices will support growth in the world's largest consumer of the fuel in some extent.
The interest shown by the Korean Development Bank demonstrates that there are still lots of capital around the world looking for investments
In July, KDB chairman and CEO Min Euoo-sung think this is the good time to buy coveted foreign targets on the cheap, as the global credit crunch had pushed down their valuations.
Analysts say lowered valuations at Western banks would enable South Korean banks to buy them and expand their reach overseas.
