According to a report published in the Financial Times late yesterday, Kohlberg Kravis Roberts, Hellman & Friedman, and Bain Capital were informed by Lehman Brothers (LEH: sentiment, chart, options) that they will be in the bidding if the brokerage decides to sell its asset-management unit (which includes Neuberger Berman). The Times also noted that LEH has not made a final decision on whether or not to pursue a sale. Private-equity firms Blackstone Group and Carlyle Group were told that they are no longer candidates to purchase the unit. LEH has not commented on the report.

The considered sale is supposed to raise cash before LEH's quarterly financial results, which are due out next month. Although LEH is more than 6% higher today, it faces a tough uphill battle. The stock is positioned south of its 10-week and 20-week moving averages, and the former has capped the shares rather consistently since earlier this year. We could see a short-covering rally for LEH (as 12% of its float is sold short) or upgrades (7 of 12 analysts rate it a "hold" or worse) but any rally would have to extend for quite a while if the stock is to recoup all of its 79% year-to-date drop.