HSBC bid for investment bank 'highly unlikely'

HSBC Holdings Plc is "highly unlikely" to acquire an investment bank, its Asia chief executive officer said yesterday, dousing speculation the bank may invest in Lehman Brothers Holdings Inc.

"Our approach, as we've said, is it's highly unlikely that we will take a major interest in an investment bank, so that's where we are at the moment," Sandy Flockhart, CEO of HSBC's Asia-Pacific region, told Bloomberg Television when asked about media reports that HSBC may invest in Lehman, the fourth-largest US securities firm. He declined to comment on specific companies.

HSBC, Europe's largest bank by market value, is interested in buying a stake in Lehman, South Korea's Chosun Ilbo newspaper reported last week, citing finance industry officials it didn't identify.