Lehman goes Korean: Is it real this time?

The Associated Press reports that the head of Korean Development Bank (KDB) has revealed that he and a consortium of other Korean investors are in talks to acquire Lehman Brothers Holdings Inc. (NYSE: LEH). Rumors of a KDB deal were floated last month, but KDB refused to confirm them. Now, perhaps talks are further along.

Where do such talks stand now? AP quotes KDB Governor Min Euoo-sung who "said that discussions were under way to form a consortium with private banks as (we) believe it is more desirable to acquire Lehman Brothers jointly rather than alone." Min is no stranger to Lehman -- AP reports that Min was "CEO of Lehman Brothers' South Korean operations until taking the helm of KDB earlier this year."

These talks come as Lehman reportedly is in talks with China's CITIC Securities or sovereign wealth funds from Abu Dhabi and Qatar to inject $6 billion in capital into Lehman. With all this smoke, could there be fire? We'll soon see. But the odds that Lehman will remain independent continue to tumble.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.