RETAIL BANKING | Tony Chua, Korea

Hana seeking a lower price of $4.3bln in KEB bid

Move made possible after KEB board gave Lone Star $466mn, as it approves $1.42 recent dividend payout.

South Korea's Hana Financial Group said on Monday it is in talks with U.S. private equity Lone Star to cut the agreed $4.3 billion acquisition price for a controlling stake in Korea Exchange Bank (KEB).

"We are still in talks with Lone Star to extend the deal deadline and one of the negotiation topics includes lowering the acquisition price to reflect recent dividend payout by KEB," a Hana spokesman said, in a report in Reuters.

KEB's board members approved on Friday a record 1,510 won ($1.42) a share in quarterly dividend, giving Lone Star a hefty $466 million, as its sales deal with Hana faces uncertainty due to delays in regulatory approval.

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