HONG KONG: Global banking giant HSBC said Monday it was in talks to buy a majority stake in Korea Exchange Bank (KEB) from the US private equity fund Lone Star. In a short statement to the Hong Kong stock exchange, HSBC said it was "in discussions about the possible acquisition of a majority stake" in KEB, South Korea's sixth largest bank, from the US private equity fund.
The move comes after HSBC executives said the bank would look to boost growth by acquisitions across Asia, when they unveiled record first half profits at the end of last month.
KEB said earlier this month its first-half earnings dropped 44.5 per cent from the previous year. The previous high figures were due to a one-off boost in profits from the sale of stakes in two companies.
Lone Star bought 50.5 per cent of KEB for some 1.5 billion US dollars in 2003 and later increased its stake to 64.6 per cent.
Last November Lone Star had to withdraw from a 7.4 billion US dollar deal to sell its entire stake in KEB to top lender Kookmin Bank after a series of investigations. - AFP/ac
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