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Lehman Brothers put itself on the block Wednesday as part of a last-ditch effort to rescue the investment bank from bad bets on real estate-related holdings that have already laid low other storied Wall Street firms.

The 158-year-old company’s chief executive Dick Fuld, known as "the gorilla" for his bloody-minded approach to investment banking, outlined a plan to sell off Lehman’s well-respected investment management unit and spin off its commercial real estate assets after it reported an almost $4 billion third-quarter loss.

"If anybody came with an attractive proposition that was compelling for shareholder value, it would be brought to the board, discussed with the board, and evaluated," Fuld said on a conference call. "We remain committed to examining all strategic alternatives to maximize shareholder value."

For investors, the strategy Fuld presented seemed long on hope and short on details, and raised questions about timing and execution, analysts said. Investors had hoped to see a solid plan in place to offset nearly $6.5 billion of losses during the past two quarters.

"This is agonizing for shareholders," said Mark Williams, a professor of finance at Boston University School of Management. "Fuld was supposed to have a war room started in March, when Bear Stearns nearly collapsed, to solve these problems, and at this point he has failed miserably."

The nation’s fourth-largest investment bank plans to sell a 55 percent stake in its investment management division, which includes its prized Neuberger Berman asset management unit. Lehman said it is in advanced talks with several bidders, but refused to give a timeline about when a deal would take place.

Investors were discouraged that no buyer had been named. Lehman began pitching a deal to private-equity firms two months ago. Analysts believe the sale could fetch about $3 billion.

Further, the firm is also taking a big bet that a spinoff of its commercial real estate assets will get a strong market reception early next year payday loans. The new entity will be called Real Estate Investments Global and will be run by an independent management.

Global banks have lost more than $300 billion from write-downs since the housing slump evolved into a full-blown credit crunch. Many on Wall Street believe another major bank failure is probable.

Compounding anxiety is that Lehman, unlike smaller rival Bear Stearns, might not be able to count on a lifeline from the government. Any Fed intervention on behalf of Lehman would heighten concern about the central bank’s role in encouraging so-called "moral hazard," where financial firms would be inclined to take extra risks because they believe the government will bail them out of their messes.

Lehman Brothers’ current crisis came to a head on Tuesday, when its shares plunged almost 50 percent after reports that the head of South Korea’s financial regulator said talks about a possible investment had ended. Fuld had been in negotiations with state-owned Korea Development Bank for several weeks about a capital infusion.

There are some who think Fuld will live up to his nickname and muscle through the firm’s rescue, although Lehman could be a much smaller firm than it is now.

Brad Hintz, an analyst with Sanford C. Bernstein and a former Lehman chief financial officer, said he is confident the company has enough capital, or that Fuld "would be selling his office furniture on eBay if he had to." He said his former boss has no intention of giving up the helm, and that the plan will keep Lehman in business.

"They are getting rid of the risk positions and keeping the company together because Dick Fuld knows his franchise is good," Hintz said.

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