Lehman Brothers has told three private equity firms - Kohlberg Kravis Roberts, Hellman & Friedman and Bain Capital - that they remain in the bidding for its asset management arm even though the investment bank has yet to make a final decision on whether to sell the unit.

Lehman is considering options to raise cash before its earnings report next month - including selling a stake in itself or selling all or part of its asset-management arm or its commercial real estate portfolio, according to people familiar with the discussions.