Talks on KDB-Bank Panin $1bln deal fail

Differences on the conditions presented by both parties caused failure of the KDB to buy 45% of Panin’s stake.

South Korea's Korea Development Bank (KDB) said it failed to clinch a deal to buy a stake in Indonesia's Bank Panin from its top shareholder, in a move marking a setback for the Korean bank's plans to expand into Southeast Asia.

The South Korean state-run bank was in negotiations to purchase a stake in a Southeast Asian bank for around $1 billion as part of stepping up its effort to expand overseas in the face of weak growth prospects at home.

"The fact is that deal is dropped due to differences on conditions" a KDB spokesman said on Thursday.

KDB was in final talks with Panin Financial to acquire a part of its 45 percent stake in the seven-largest Indonesian bank in a bid to control the bank in the future, a source close to the deal said.

View the full story in Reuters.