KDB says it has ended talks with Lehman Brother for possible investment

SEOUL, Sept. 10 (Yonhap) -- South Korea's state-run Korea Development Bank said Wednesday it has ended talks with Lehman Brothers Holdings Inc. for a possible investment in the subprime-battered U.S. bank.

"There are disagreements over transaction conditions with Lehman at this point and considering financial market situations at home and abroad, the lender has ended the negotiations with Lehman," the lender said in a statement.

The statement came as Min Euoo-sung, chairman of KDB, said last week that the
lender is discussing ways to form a consortium with local banks for investing in
Lehman Brothers. He said KDB is in talks with Lehman to buy a stake in Lehman
Brothers, but the lender has yet to narrow differences over possible takeover
prices with Lehman.

Jun Kwang-woo, chairman of regulatory Financial Services Commission, on Monday
urged caution for the policy lender over a possible investment in Lehman, adding
it would be better for private lenders to take the lead in buying a global
investment bank.