U.S. investment bank Lehman Bros. Holdings Inc. said today that it lost $3.9 billion during its fiscal third quarter, which ended Aug. 31, and announced that it plans to sell a majority stake in its investment management division, slash its dividend and potentially sell the entire company, the Associated Press reported.

“This is an extraordinary time for our industry, and one of the toughest periods in the firm’s history,” CEO Richard Fuld said in a statement.

Lehman Bros., the fourth-largest U.S. securities firm, said shares have plummeted more than 80 percent in 2008 as investors’ confidence in the company lagged, and it suffered from bad bets on mortgage securities and risky assets.

The company had initially planned for a dividend of 68 cents per share, but has now slashed that number to 5 cents. Lehman Bros. also posted a negative $2.9 billion in net revenues, versus an optimistic forecast of $286.3 million.

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

The company will sell a 55 percent stake of its investment management business, which includes Neuberger Berman, to an unknown buyer. The company also plans to release $25 billion to $30 billion of its commercial real estate portfolio within the next year to a publicly traded company called Real Estate Investments Global.