DOW JONES NEWSWIRES

Lehman Brothers Holdings Inc. (LEH) will offer 3 million shares of non- cumulative perpetual convertible preferred stock, saying the offering is an opportunity to improve funding and reduce leverage while minimizing shareholder dilution.

Underwriters have the option to buy up to 450,000 additional shares.

The company said it will use proceeds from the offering to bolster its capital and increase financial flexibility.

Shares of Lehman were recently trading at $35.11 after closing down 23 cents, or 0.6%, at $37.64.

-Melissa Korn; 201-938-5400; AskNewswires@dowjones.com

  (END) Dow Jones Newswires
  03-31-08 1700ET
  Copyright (c) 2008 Dow Jones & Company, Inc.