중앙데일리

HSBC wades into red tape around purchase of KEB

Oct 03,2007
HSBC has applied at Korea’s Fair Trade Commission for permission to acquire Korea Exchange Bank from Lone Star Funds.
However, the Financial Supervisory Commission repeated its stance that it will not approve the British bank’s planned buyout of KEB until the court rules on the legality of Lone Star’s purchase of KEB.
The Fair Trade Commission said yesterday that HSBC submitted an application to purchase a 51.02-percent stake of KEB last Friday. HSBC signed a contract on Sept. 3 with Lone Star Funds to purchase all of the U.S. equity fund’s shares. The agency said it would “carefully” review the application, a process that usually takes 30 days. If additional information is needed, it could take up to 90 days.
HSBC agreed to pay $6.3 billion if the British bank can finish the acquisition of KEB by the end of January, or $6.4 billion if it can close the deal by the end of April.
HSBC said yesterday in a statement that an acquiring bank is required to report a planned acquisition at the Fair Trade Commission within 30 days of signing a contract. HSBC is not a domestic bank, so it is not regulated by financial industry but by fair trade laws.
The antitrust agency reviews whether an acquisition would hinder competition. However, whether HSBC qualifies to buy a controlling stake in KEB still needs to be approved by the Financial Supervisory Commission.
In response to the application, Hong Young-man, a spokesperson for the FSC, said, “There is no change in our position that until a court ruling regarding the legality of the sale of KEB to Lone Star Funds in 2003 is made, we cannot approve the resale [by Lone Star Funds].”
Hong said HSBC has not yet presented any documents to the financial regulator, and HSBC said there is no time table set for filing an application for the acquisition at the financial regulator.


By Limb Jae-un Staff Writer [jbiz91@joongang.co.kr]



dictionary dictionary | 프린트 메일로보내기 내블로그에 저장