hsbcs-purchase-of-keb-boosted-by-fsc-statement

HSBC's purchase of KEB boosted by FSC statement

Korea's financial regulator announces a review of Lone Star's sale of its KEB stake to HSBC as the July 31 deadline approaches.

By Rupert Walker

July 27, 2008

South KoreaÆs financial watchdog, the Financial Services Commission FSC, has announced that it intends to start a regulatory review of the sale of Lone StarÆs controlling stake in Korea Exchange Bank KEB to HSBC Holdings this week, ahead of the July 31 deadline for finalising the $6.3 billion deal.

The sale of KoreaÆs fifth biggest bank, which was agreed between HSBC and US private equity firm Lone Star last September, has been delayed as the FSC has withheld approval due to legal disputes over Lone StarÆs initial purchase of the bank in 2003, and amid public anger at the terms of that sale.

But in a statement released on July 25, the FSC said...

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