Lehman Brothers Holdings Inc., reporting the biggest loss in its 158-year history, said Wednesday that it will sell a majority stake in its asset management unit, spin off commercial real estate holdings, and cut its dividend in an effort to shore up capital and regain investor confidence.

In preliminary third-quarter results, Lehman said it posted a $3.9 billion loss on $5.6 billion of writedowns, worse than the $2.2 billion loss analysts had estimated. The company said it is auctioning off about 55% of its asset management group, including fund manager Neuberger Berman, but did not name potential bidders. The real estate spinoff is expected to close in the first fiscal quarter of 2009, according to a statement Wednesday.

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