Updated from Sept. 1.Lehman Brothers (LEH) shares were rising in premarket trading Tuesday, after a report that it hopes to wrap up a deal this week that would give it billions of dollars in new capital.
The troubled investment bank's best hope is the Korea Development Bank, which could provide as much as $6 billion in exchange for a significant stake in Lehman, London's
reported over the weekend.
report didn't cite sources. It said that Lehman hoped to wrap up talks with KDB this week but added that Lehman "is understood" to be working on alternative plans under which it might get capital from Chinese brokerage Citic Securities or Middle Eastern sovereign wealth funds.
Lehman, which has been hit hard by the subprime meltdown and credit crisis, needs capital to shore up its balance sheet. There has been speculation for months that Lehman might follow in the footsteps of
, which collapsed earlier this year and was purchased by
JP Morgan Chase
. Lehman plans to report third-quarter results in mid-September.
Lehman Brothers shares finished Friday up 22 cents at $16.09. U.S. stock markets were closed Monday in observance of Labor Day, but the stock was up 6.4% to $17.12 in recent premarket action.
This article was written by a staff member of TheStreet.com.