Lehman looking at asset management sale

By Megan Davies and Paritosh Bansal

NEW YORK (Reuters) - U.S. investment bank Lehman Brothers Holdings LEH.N is considering options, such as selling all or part of its asset management unit, with an aim of reaching a deal by the time it releases third quarter earnings, sources said.

Analysts and bankers have recently said that Lehman may opt to part with its asset management business to further boost its capital. Experts estimate the business, whose core is Neuberger Berman, could be worth about $8 billion (4.3 billion pounds).

It was not immediately clear if all or part of the investment management business would be sold. Some have said an outright sale of the entire investment management business could be tough, as it would be too big for most buyers to swallow.

One source familiar with the situation said Lehman is marketing its asset management unit to a number of buyers including private equity firms.

A second source said Lehman is looking at several alternatives including selling a stake in the business, and is aiming to have the strategy resolved by the time it announces third quarter earnings.

The end of Lehman's fiscal third quarter is less than two weeks away, and the bank typically announces its third-quarter earnings in mid-September.

In June, the bank posted its first quarterly loss as a public company, of $2.8 billion.

Lehman did not immediately respond for comment.