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Lehman Wooed Korean Suitors: Report

Updated from 8:59 a.m. EDT

Lehman Brothers (LEH) was in talks with potential Korean partners prior to announcing plans to raise $6 billion through common and preferred stock offerings earlier this week, The Financial Times reported Wednesday.

The firm, which on Monday warned it would suffer a $2.8 billion first-quarter loss, plans to sell $4 billion in common and $2 billion in preferred shares on Thursday. The firm warned of the loss early and raised the money as its share price was hammered in recent weeks as rumors persisted about its capital position.

The Financial Times said Lehman still may strike a strategic deal with a Korean partner by the end of the year. Potential investors include Korea Development Bank, Kookmin Bank (KB - Get Report), Korea First Bank, the Korean Pension Service and Korean Investment Corp., the government-controlled fund that invested in Merrill Lynch (MER).

Cramer: Lehman Not Out of the Woods

Citigroup (C - Get Report), Morgan Stanley (MS - Get Report) and Bear Stearns, since acquired by JPMorgan Chase (JPM - Get Report), also have taken on strategic partners abroad during the credit crisis.

Lehman shares have plummeted more than 66% over the past year. The stock closed down 6.7% to $27.50 Tuesday.

Shares were down another 3.6% to $26.50 in recent trading Wednesday.

This article was written by a staff member of TheStreet.com.

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