China's CITIC Securities says no talks with Lehman

SHANGHAI, Aug 21 (Reuters) - CITIC Securities (600030.SS) said on Thursday it has held no formal talks with Lehman Brothers LEH.N on a stake investment and will focus on its domestic business this year as China's biggest brokerage is still concerned about snowballing U.S. credit problems.

The Financial Times reported on Thursday that Lehman Brothers had held talks on a sale of up to half its shares with China's CITIC Securities as well as with state-owned Korea Development Bank (KDB), but both investors walked away saying the price was too high. (For details click [ID:nSP251478])

"We had no such talks as far as I know," CITIC Securities board secretary Tan Ning told Reuters by telephone.

"In fact, this year we will focus on our domestic business as it seems there are no signs when the U.S. credit problems may eventually end," he added.

A Lehman Brothers spokeswoman and KDB declined to comment on the report. (Reporting by George Chen; Editing by Edmund Klamann)