hsbc-gives-up-chase-for-keb

HSBC gives up chase for KEB

HSBCÆs dream of a leap forward in KoreaÆs banking market is dashed by a failure to renegotiate terms with Lone Star.

By Rupert Walker

September 21, 2008

After a year of enduring regulatory obstacles and political controversy, HSBC said late Thursday that it has finally given up its attempt to buy Korea Exchange Bank KEB. The UK-headquartered bank announced that it had failed to reach an agreement with US private equity firm Lone Star on the purchase of the latter's 51% stake ôon a basis acceptable to HSBCö.

HSBC is exercising its right to end the purchase agreement reached between its subsidiary, HSBC Asia, and Lone Star on the terms announced on September 3, 2007. It seems clear that Lone Star was not willing to renegotiate the original price tag of $6.3 billion û at least not at a...

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