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Lone Star still seeks to sell stake in Korea Exchange, chairman says
NEW YORK, June 9 (Yonhap) -- U.S.-based investment fund Lone Star is still continuing its efforts to sell a controlling stake in Korea Exchange Bank, its chairman said Saturday.
The fund, if possible, may sell South Korea's fifth-largest lender before a Seoul court rules on the legality of its acquisition of the bank in 2003, Lone Star Chairman John Grayken said in an interview with Yonhap News Agency.
He said the fund has been in talks with Singapore's DBS Group Holdings Ltd. over the sale of Korea Exchange, but there has not been progress in the negotiations.
Grayken said it is difficult to say "when" the fund will sell Korea Exchange, but it may be possible to sell the bank this year if "conditions" are good.
In 2003, the U.S. equity fund bought a 50.5 percent stake in Korea Exchange for 1.4 trillion won (US$1.5 billion). The fund signed an agreement in May last year to sell its increased 64.62 percent stake to Kookmin Bank, South Korea's top lender.
However, in November last year the fund stopped the deal, which was expected to give it a profit of more than 4 trillion won, citing the Seoul prosecution's investigation into the alleged illegality of its takeover of Korea Exchange.
The Seoul court is assessing whether there was any wrongdoing by Korean government officials and former bank officials involved in the sale and an allegation that Korea Exchange's financial strength was deliberately underestimated to facilitate the bank's sale to Lone Star.
sam@yna.co.kr
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