Court Rules KEB Sale to Lone Star Was Legal

by Robert Koehler on November 25, 2008

A South Korean court on Monday rejected claims that the 2003 sale of Korea Exchange Bank (KEB) to U.S. investment firm Lone Star was illegal, a verdict that may clear a key hurdle to putting control of the bank back up for sale.

The ruling, which prosecutors will appeal, may end a long-running debate on whether KEB was sold at far below-market prices, which had been delaying Lone Star’s planned sale of KEB and led HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) to drop a $6.3 billion offer to buy 51 percent of the lender in September.

It also comes when South Korea is striving to woo foreign investors into the fourth-largest economy in Asia as major global economies are in recession and the country is bracing for the second consecutive annual trade deficit for 2009.

Have your say.

{ 10 comments… read them below or add one }

1 red sparrow November 25, 2008 at 1:03 pm: Oh my, what perfect timing.
2 gbevers November 25, 2008 at 3:02 pm: I think Lonestar should sell their shares to a Japanese bank on the condition that they rename it “Takeshima Exchange Bank” (TEB).
3 Jewook November 25, 2008 at 3:55 pm: “Takeshima Exchange Bank”

Well the Japanese are never going to get their greedy hands on Dokdo, so they might as well satisfy themselves with a naming of a bank. Of course with way Koreans overreact about the issue, they’ll probably try to open a large scale resort called “Daemado Island” on Tsushima. So all those shockingly impolite Koreans tourists can spend their money without being an eyesore to the islands residents.
4 iwshim November 25, 2008 at 4:03 pm: “The ruling, which prosecutors will appeal…”

Jeeze don’t these people have better things to do, like keep serial rapist behind bars?

gbevers – You doing ok? You kinda seem obsessed with Dokdo.
5 bumfromkorea November 25, 2008 at 4:15 pm: You doing ok? You kinda seem obsessed with Dokdo.

I would be worried if he wasn’t obsessed with Dokdo. Sounds like he’s just doing peachy.
6 babarian. November 25, 2008 at 8:19 pm: Gbevers

Are you planning to go to Japan, Dubai or back home to America, the land of smart angels, at the end of the contract and finally get out of Korea, the land of dumb barbarians?
7 MrMao November 25, 2008 at 11:40 pm: Why do you care?
8 babarian. November 26, 2008 at 9:01 am: Mao Boy

You’re a dummy.
9 Darth Babaganoosh November 26, 2008 at 11:18 am: “You’re a dummy”? Really? What are you, two?
10 babarian. November 26, 2008 at 1:44 pm: Read between the lines, dummies.