Marriage Is Postponed As 2 Banks Squabble

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Marriage Is Postponed As 2 Banks Squabble

The scheduled date for Kookmin Bank and H&CB to sign a contract for their planned merger came and went Saturday, as the two banks disagreed on the equity swap ratio and which bank would be the surviving entity, a merger committee official said.

H&CB insisted that one H&CB share be worth 1.857 shares of Kookmin, as the two banks agreed in a memorandum of understanding December 21. But Kookmin now wants one H&CB share to trade for 1.5 Kookmin shares to better reflect the recent performances of Kookmin's subsidiaries, such as Kookmin Card.

Kookmin is arguing that it should remain as the surviving entity because it is the larger of the two banks. But H&CB says it would cost less for the merged bank to be listed on the New York Stock Exchange if H&CB survives, because it is already listed.

The snags could push back the merger date to as late as October, because of problems related to the New York stock listing.
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