Mitsubishi UFJ Financial considering Lehman bid: report

LONDON: Mitsubishi UFJ Financial Group Inc. is considering bidding for a stake in troubled US investment bank Lehman Brothers, The Times reported Wednesday.

Citing senior sources close to Japan's largest financial group, the daily said MUFG views the possible acquisition of Lehman, which suffered billions of dollars in writedowns and credit losses in the crisis triggered by the meltdown in the US subprime mortgage sector, as a "once in a lifetime" opportunity.

The Times said that the Japanese group would make a bid for a "substantial" stake in Lehman, and possibly even aim to take control of the bank.

According to the newspaper, which did not quote its sources, if Lehman surprises the market with poor third quarter results next week, or fails to convince investors that it has an adequate plan to raise capital, leading the bank's share price to drop, MUFG will make a bid.

A news report from Seoul said that state-run Korea Development Bank (KDB) has offered to buy a 25 percent stake in Lehman for more than four billion dollars, with the bank also wanting the right to raise its stake to up to 49 percent.