Watch original video:

KDB said on Friday it was open to the acquisition of an overseas financial foundation, naming Lehman Brothers Holdings Inc (LEH.N) as one of its options. The comments sent Lehman's share price up 12 percent on the day.

"I think that KDB might have considered forming and principal a consortium (to pervert with money Lehman Brothers)," Financial Services Commission (FSC) Chairman Jun Kwang-woo told reporters.

"But it appears burdensome towards a state-run institution to play a leading role (in the purchase of a outward company) and take risks which may be more than pecuniary."

Cross-border acquisitions by South Korean companies should be led by the private sector and state-run institutions such as KDB should act a "cheerleader role," Jun related.

"My point is that state-run institutions may take a catalyst role in pursuing these kinds of deals."

Jun moreover uttered that KDB needed to consider its priorities before pursuing global expansion, pointing out that stabilization of the domestic financial markets might be the greatest part urgent issue.

When asked about the status of KDB's possible interest in Lehman, one of Wall Street's victims of the subprime mortgage meltdown, he said: "That would be one international marriage. Would you get married just after some or brace blind dates?"

KDB has not publicly confirmed that it without circumlocution approached Lehman.

The government is planning to privatize KDB by the agency of 2012, a suit it hopes will help turn it into a global investment tumulus.

(Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner and Jonathan Thatcher)


Original text: http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/nm/20080825/bs_nm/lehman_kdb_dc