Banking News

Lone Star back in the hunt for SeoulBank

Lone Star back in the hunt for SeoulBank

(South Korea) - US investment fund Lone Star has tabled a revised bid for nationalised SeoulBank, despite reports from Korea's regulator of having been beaten by local bank Hana last week. The Government is looking to execute its biggest bank privatisation transaction this month and continues to review bids valued at around one trillion won (US$836 million) from Lone Star and Hana Bank.

Lone Star has now revised its proposal providing for profits incurred after any acquisition being shared with state-run Korea Deposit Insurance Corp (KDIC) for three years, according to reports.

Hana Bank meanwhile is not planning to revise its bid and has threatened legal action if the Government accepts Lone Star's revised bid.

Analysts still see Hana as most likely to win the contest given the Government desire to encourage bank mergers in consolidating the sector.
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