NEW YORK, September 10, 2008 (AFP) - Ailing investment bank Lehman Brothers on Wednesday posted an estimated 3.9 billion-dollar quarterly loss as it announced a series of asset sales to shore up its finances.

The beleaguered Wall Street firm, seen as in desperate need for a capital injection, offered no new plans on that front, but announced plans to sharply reduce its exposure to the real estate sector and other steps to raise cash.

The asset sales include a stake in Lehman's investment management unit as well as a chunk of its British real estate portfolio. The firm also said it would spin off its commercial real estate division.

'This is an extraordinary time for our industry, and one of the toughest periods in the firm's history,' chairman and chief executive Richard Fuld said.

'The strategic initiatives we have announced today reflect our determination to fundamentally reposition Lehman Brothers by dramatically reducing balance-sheet risk, reinforcing our focus on our client-facing businesses and returning the firm to profitability.'

Lehman said it would generate capital through the sale of a majority stake of around 55 percent in its investment management division.

The firm also said it was 'formally engaged with BlackRock Financial Management,' to sell an estimated 4.0 billion dollars of its British residential mortgage portfolio.

Another step announced was the spinoff of its commercial real estate portfolio worth some 25 billion to 30 billion dollars.

The moves came after a meltdown of shares of the white-shoe Wall Street investment bank as hopes faded for an injection of fresh capital.

Those hopes for a 'white knight' were dashed Wednesday as South Korea's state-run Korea Development Bank announced that it had abandoned negotiations about buying a stake in Lehman Brothers.

Lehman shares gained some four percent at the opening Wednesday to 8.13 dollars. The shares had tumbled 44.95 percent Tuesday to end at 7.79 and have plunged 88 percent since February.

Lehman announced its fiscal third-quarter losses and restructuring a week ahead of plans, aiming to shore up confidence and avert the kind of meltdown of confidence that killed rival Bear Stearns earlier this year.

The investment bank also slashed its dividend for the June-August period to five cents a share from 68 cents, saving some 450 million dollars annually.

The new structure leaves Lehman with 'limited commercial real estate exposure,' in an effort to ease fears it could be hurt by a slump in commercial property expected following the collapse in the residential real estate market.

It remained unclear whether the steps would shore up confidence in Lehman.

'Investors continue waiting for an actual buyer or business partner to emerge,' said Jeffrey Ham at Briefing.com.

'While it is easy to put assets and operations on the selling block, it is more difficult to find a buyer amid the current tumult. Lehman's inability to secure an investor or buyer is a sign of the wariness surrounding the firm and its holdings.'

Lehman said its latest quarterly results include a markdown in value of 7.8 billion dollars in soured assets -- including 5.3 billion in residential mortgage-related positions and 1.7 billion in commercial real estate positions, offset in part by some other one-time gains.

It has eliminated approximately 1,500 positions since the beginning of the third quarter in an effort to contain costs.

The results come after an unprecdented 2.8 million-dollar loss in the second quarter, the first loss since the investment firm went public in 1994.

Like other banking firms, Lehman suffered billions of dollars in writedowns and credit losses in the crisis triggered by the meltdown of the US high-risk subprime mortgage sector.

Lehman's latest woes came just two days after the US government seized control of struggling mortgage finance titans Fannie Mae and Freddie Mac.