RETAIL BANKING | Tony Chua, Korea

Hana and Lone Star extends talks for KEB

Both parties agree to extend deal for another 6 months as regulatory delays threatened to disrupt Hana's purchase of 51% stake in KEB.

South Korea's Hana Financial Group Inc and U.S. buyout fund Lone Star have agreed to extend the $4.3 billion takeover deal of Korea Exchange Bank for six months, a media report said.

The sale has been hanging in the balance over regulatory delays to approval of the deal.

Citing an unnamed source, the Seoul Economic Daily reported that both parties were fine-tuning issues and would soon formalise an extension for what could be the country's biggest banking deal.

A Hana spokesman said he could not confirm the report.

The paper reported that Hana would acquire a smaller stake of less than 10 percent of KEB from Lone Star to ensure their commitment to the deal.

Even after the original deadline for the transaction lapsed in late May, Hana and Lone Star continued to discuss an extension of the deal as regulatory delays threatened to derail Hana's purchase of a 51 percent stake in KEB.

View the full story in Reuters.

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