Hana, Lone Star mulls KEB deal deadline extension

A source said both parties were positive on extending what may be the largest banking deal in Korea.

South Korea's Hana Financial Group and U.S. buyout fund Lone Star are weighing extending the deadline of a $4.1 billion takeover deal of Korea Exchange Bank, a source with direct knowledge of the matter said.

The move comes days after South Korean regulators deferred a decision on approval of the transaction, which sparked questions over how the long-pending deal would get through in its current form.

The source told Reuters that both parties were positive on extending the deal, which will be the country's biggest banking deal, but more discussion was underway for detailed terms.

Regulatory delays that have plagued Hana's planned purchase of a 51 percent stake in KEB followed a surprise Supreme Court decision to overturn a Seoul High Court's acquittal of a former head of Lone Star's Korean operation on stock price manipulation charges in relation to a unit of KEB. The case was sent back to the High Court.

A Seoul High Court official said the first hearing would take place on June 16 but there was no certain timetable set for a final ruling.

View the full story in Reuters.