RETAIL BANKING | Tony Chua, Korea

Hana willing to renegotiate with KEB if Lone Star doesn’t appeal

Hana said to have cut the agreed purchase price as KEB shares have fell sharply since the transaction was agreed..

Hana Financial Group is willing to renegotiate its agreed takeover deal of Korea Exchange Bank (KEB) from Lone Star LS.UL, should the U.S. fund decide not to appeal a court verdict against it, Hana's chairman said on Tuesday.

Lone Star was found guilty of manipulating stock prices of a KEB unit last week, clearing a legal uncertainty clouding the fund's exit from South Korea, as Korean regulators held off approval for the $4.1 billion deal citing legal issues.

It can appeal against the ruling by Thursday.

Market talk has swirled recently that Hana may be trying to cut the agreed purchase price as KEB shares have tumbled sharply since the transaction was agreed on due to the global financial market turmoil.

Hana chairman Kim Seung-yu told Reuters on the sidelines of a local forum that it was open to renegotiating the deal should Lone Star not appeal against the court ruling.

A Seoul court official said on Tuesday that Paul Yoo, the former head of Lone Star's Korean operations who was also found guilty of stock price manipulation, had appealed against the ruling.

View the full story in Reuters.

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