Banks Postpone Merger to Meet U.S. Stock Rules

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Banks Postpone Merger to Meet U.S. Stock Rules


The merger of Kookmin Bank and H&CB is unlikly to take place as planned on July 1 because of delays in listing the merged bank's shares on the New York Stock Exchange.

"To meet listing regulations on the U.S. exchange, Kookmin Bank, whose shares are not listed on the market yet, is preparing a new set of financial statements based on U.S. accounting standards. But it is difficult for the bank to finish drawing up those financial statements by the end of June. The merged bank probably won't be able to get a listing on the New York market on July 1," said a senior official of the bank merger committee.

The listing of the merged bank's shares on the main U.S. stock exchange is likely to take place in September at the earliest, according to two banks' officials. As a result of the delay, other procedures such as a shareholders' meeting and stock swaps will also be deferred.

Most of the delay, bank officers say, is because of the need to examine the books of the Korea Long Term Credit Bank, which Kookmin took over in 1999. "We cannot pinpoint when the listing will be approved; it is solely up to the U.S. Securities Exchange Commission," said Kim Yoo-hwan, managing director at Kookmin Bank.

by Kim Won-bae

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