Seeking Alpha
09-10-2008, 06:41 AM
<ul>
<li><b><a href="http://ftalphaville.ft.com/blog/2008/09/10/15754/its-official-lehman-takeover-story-now-out-of-control/">Piecing together the Lehman puzzle.</a></b> Shares of Lehman (LEH) plunged <b><font color="red">45%</font></b> Tuesday after reports Korea Development Bank was not pursuing a stake in the troubled broker - which it later denied. After the close, Lehman pushed forward its <a href="http://www.lehman.com/press/pdf_2008/0909_3Q08_conference_call_release.pdf">Q3 earnings report (.pdf)</a> by one week, to this morning, saying it would also discuss 'key strategic alternatives.' Overnight, conflicting media reports say 1) KDB has <a href="http://www.marketwatch.com/news/story/korea-development-bank-says-lehman/story.aspx?guid=%7B6E2281A5-DA2D-4B27-9140-AB1379B7A473%7D">ended talks</a> with LEH, 2) KDB is seeking to take a <a href="http://www.reuters.com/article/ousiv/idUSSEL00024820080910">controlling stake</a> in LEH (more than the 25% mentioned in previous reports) for about $6B, 3) LEH is <a href="http://online.wsj.com/article/SB122096527557014629.html">in talks</a> with BlackRock (BLK) to sell a package of residential real-estate assets, 4) LEH continues to talk with KKR and Carlyle about a possible purchase of its asset-management unit, 5) LEH will spin off some of its commercial real estate assets into a separate company, internally known as SpinCo, and 6) Nomura, Japan's biggest I-bank, <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aFEjJqFCqhjc&refer=home">may bid</a> for a piece of the pie. At 6:50 AM, shares are up 27% to $9.90. <a href="http://seekingalpha.com/news">Stay tuned</a>.<!--more--></li>
<li><b><a href="http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BCOM&date=20080909&id=9119029">When it rains...</a></b> Ratings agencies also played a part in Lehman's (LEH) Tuesday tumble. S&P placed Lehman on CreditWatch with negative implications, citing "heightened uncertainty about Lehman's ability to raise additional capital, based on the precipitous decline in its share price in recent days..." <a href="http://www.forbes.com/afxnewslimited/feeds/afx/2008/09/10/afx5406831.html">Fitch Ratings</a> put Lehman on rating watch negative over difficulties in raising capital: "In the likely event that additional capital is required - due to more write-downs, valuation adjustments and/or trading losses - the cost could be prohibitively expensive given investors' decreasing appetite for financial institutions exposure."</li>
<li><b><a href="http://www.businesswire.com/news/google/20080909006569/en">FedEx sees strong Q1, difficult year.</a></b> FedEx (FDX) jumped <font color="green">4.8%</font> in extended trading after it bumped its FQ1 EPS guidance to $1.23 (vs. $0.95 consensus). However, FedEx did not change its full-year outlook: "While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy," CEO Alan Graf said.</li>
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<li><b><a href="http://ftalphaville.ft.com/blog/2008/09/10/15754/its-official-lehman-takeover-story-now-out-of-control/">Piecing together the Lehman puzzle.</a></b> Shares of Lehman (LEH) plunged <b><font color="red">45%</font></b> Tuesday after reports Korea Development Bank was not pursuing a stake in the troubled broker - which it later denied. After the close, Lehman pushed forward its <a href="http://www.lehman.com/press/pdf_2008/0909_3Q08_conference_call_release.pdf">Q3 earnings report (.pdf)</a> by one week, to this morning, saying it would also discuss 'key strategic alternatives.' Overnight, conflicting media reports say 1) KDB has <a href="http://www.marketwatch.com/news/story/korea-development-bank-says-lehman/story.aspx?guid=%7B6E2281A5-DA2D-4B27-9140-AB1379B7A473%7D">ended talks</a> with LEH, 2) KDB is seeking to take a <a href="http://www.reuters.com/article/ousiv/idUSSEL00024820080910">controlling stake</a> in LEH (more than the 25% mentioned in previous reports) for about $6B, 3) LEH is <a href="http://online.wsj.com/article/SB122096527557014629.html">in talks</a> with BlackRock (BLK) to sell a package of residential real-estate assets, 4) LEH continues to talk with KKR and Carlyle about a possible purchase of its asset-management unit, 5) LEH will spin off some of its commercial real estate assets into a separate company, internally known as SpinCo, and 6) Nomura, Japan's biggest I-bank, <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aFEjJqFCqhjc&refer=home">may bid</a> for a piece of the pie. At 6:50 AM, shares are up 27% to $9.90. <a href="http://seekingalpha.com/news">Stay tuned</a>.<!--more--></li>
<li><b><a href="http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BCOM&date=20080909&id=9119029">When it rains...</a></b> Ratings agencies also played a part in Lehman's (LEH) Tuesday tumble. S&P placed Lehman on CreditWatch with negative implications, citing "heightened uncertainty about Lehman's ability to raise additional capital, based on the precipitous decline in its share price in recent days..." <a href="http://www.forbes.com/afxnewslimited/feeds/afx/2008/09/10/afx5406831.html">Fitch Ratings</a> put Lehman on rating watch negative over difficulties in raising capital: "In the likely event that additional capital is required - due to more write-downs, valuation adjustments and/or trading losses - the cost could be prohibitively expensive given investors' decreasing appetite for financial institutions exposure."</li>
<li><b><a href="http://www.businesswire.com/news/google/20080909006569/en">FedEx sees strong Q1, difficult year.</a></b> FedEx (FDX) jumped <font color="green">4.8%</font> in extended trading after it bumped its FQ1 EPS guidance to $1.23 (vs. $0.95 consensus). However, FedEx did not change its full-year outlook: "While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy," CEO Alan Graf said.</li>
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Twice a year, hundreds of value investors – who manage tens of billions of dollars for hedge and mutual funds – get together to share ideas and learn from investing legends at the <b><a href="http://www.valueinvestingcongress.com/?utm_source=SA&utm_medium=CL&utm_campaign=N8WSB1&ocode=N8WSB1" target="_blank">Value Investing Congress</a></b> October 6-7 in NYC. As a sponsor, we've secured a special discount. Use discount code <a href="http://www.valueinvestingcongress.com/register/?utm_source=SA&utm_medium=CL&utm_campaign=N8WSB1&ocode=N8WSB1" target="_blank">N8WSB1</a> before 9/5 to save <b>$1100.</b></div></p></ul><br/><a href='http://seekingalpha.com/article/94789-wall-street-breakfast-must-know-news?source=feed'>Complete Story »</a>
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