Lehman Sees Large Loss, Cuts Dividend - TheStreet

Lehman Sees Large Loss, Cuts Dividend

Lehman Brothers on Wednesday said it plans to sell a majority stake in its investment-management division and expects to report a third-quarter loss of $3.9 billion.
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Updated from 7:46 a.m. EDT

Lehman Brothers

(LEH)

on Wednesday said it plans to sell a majority stake in its investment-management division and expects to report a third-quarter loss of $3.9 billion.

Lehman also said it plans to spin off its commercial real-estate assets into a new company.

The company cut its annual dividend to 5 cents a share from 68 cents.

Lehman Brothers moved up the date of its earnings release a week after its shares fell 45% Tuesday amid speculation a prospective deal to raise capital hit a snag and concerns mounted the firm would default on its debt.

Korea Development Bank

on Wednesday confirmed it suspended talks to invest in Lehman, citing disagreements over the terms of the transaction and the condition of financial markets around the world.

Following the news, shares of Lehman were falling 5% in premarket trading, a day after its stock slumped more than 40% on worries about its capital position.

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