Lehman Asks PE Firms To Stay

(Reuters) – Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) has asked three private equity firms to remain in bidding for its asset management arm even though the investment bank has yet decide on whether to sell the unit, the Financial Times reported.

Kohlberg Kravis Roberts, Hellman & Friedman and Bain Capital have been told by Lehman that their bids are high enough to go forward, the paper said citing people familiar to the matter.

Although Lehman has not reached a decision, it has been soliciting bids from private equity firms to gauge interest in its asset management arm, which includes Neuberger Berman, the fund manager, and minority stakes in several hedge funds.

Both Lehman Brothers and Kohlberg Kravis were not immediately available for comments.

(Reporting by Sweta Singh in Bangalore)