HSBC looks set to end their pursuit of the Korea Exchange Bank (KEB) in what would be their third consecutive failed attempt to break into the Korean market. Britain’s largest bank has been involved in a protracted deal to buy the bank for £3 billion, but has been hindered by a series of legal battles and investigations from financial regulators.
Korea’s Seoul market is notoriously suspicious of foreign investors, though HSBC’s rival Standard Chartered has been able to gain a foothold in the Korean market. Speculation that HSBC would withdraw their bid has been rife since the turn of the year, whilst many experts have commented that the bank would have been overpaying for the Korean firm. An official withdrawal from HSBC would be likely to trigger a bid from South Korean bank Hana Financial for the controlling stake in KEB.
HSBC has been trying to purchase the 51 per cent stake in KEB from venture capitalists Lone Star Funds . However, the financial regulators took issue with Lone Star’s acquisition of KEB in 2003.
HSBC Set to End Pursuit of Korean Bank
HSBC Set to End Pursuit of Korean Bank
Wed, 11 Jun 2008
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