Lehman converts seen having 7-7.5 percent dividend

NEW YORK (Reuters) - Lehman Brothers Holdings Inc's $3 billion of convertible preferred shares are seen having a dividend of 7 percent to 7.5 percent and a conversion premium of 30 percent to 35 percent, according to people familiar with the deal.

The deal is expected to be sold by Tuesday before market close, a person familiar with the matter said.

(Reporting by Dan Wilchins; Editing by Andre Grenon)