South Korean financial firms Shinhan and Hana, and the state-run Korea Development Bank are unlikely to make an acquisition play for Lone Star’s 51% stake in Korea Exchange Bank, reported Financial News Daily.
The report cited a person with knowledge of Shinhan and Hana for the information. He told the paper that both listed financial holding companies are not interested in acquiring Korea Exchange Bank, and are more likely to be interested in a merger with Woori Finance (see Woori Privatization)
The report also cited an unspecified insider at state-run Korea Development Bank (KDB) as saying that it would not be of benefit to the public for a state-controlled financial services company to acquire a bank for a possibly high price in a competitive bidding process from an overseas private equity fund.
Previously it was reported that KB Financial would also be unlikely to participate in the bidding process, as due to a management shakeup they are yet to appoint someone with enough authority to make the play.
As reported earlier, Credit Suisse, which is handling the sale for Lone Star, the Dallas, Texas-based private equity firm, had mailed teaser letters to potential buyers.
(Sources: Financial News Daily, Edaily)
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