KEB blow by blow

KEB logoReports of HSBC’s renewed interest in KEB have given me the impetus to resurrect a post which has been work-in-progress for a while. I’ve been periodically trying to google back in time to reconstruct the whole KEB saga, and yesterday’s FT coverage gave a very useful framework on which to build.

So here is another of my collections of links around a particular story, which I’ll update as and when I come across more. The chronology and narrative is from the FT. The links are mine, many of them via Tom Coyner.

August 2003 Lone Star agrees to pay Won1,400bn ($1.5bn) to take control of ailing Korea Exchange Bank.

January 2005 HSBC eyes KEB after losing out to Standard Chartered’s $3.3bn bid for Korea First Bank.

March 2006 Kookmin Bank agrees to buy a controlling stake in KEB for $6.7bn.

April 2006 Lone Star offers to donate to South Korea Won100bn of the estimated Won4,500bn profit made from its sale of KEB, bowing to pressure to pay taxes on profits made in the country. Questions remain over the sale of KEB to Lone Star.

June 2006 South Korea’s Board of Audit and Inspection (BAI) clears Lone Star of any wrongdoing in its 2003 acquisition of KEB.

November 2006 The former chief executive of KEB is arrested, the first detention in the investigation into the bank’s 2003 sale. Meanwhile, South Korean prosecutors file stock manipulation charges against Lone Star and KEB.

November 2006 Lone Star cancels its agreement to sell KEB to Kookmin Bank

December 2006 South Korean prosecutors conclude that the sale of KEB to Lone Star was illegal due to the manipulation of financial data. Lone Star was not directly involved, according to the prosecutor. Lone Star rejects the conclusion, claiming the lender’s capital adequacy ratio was over- rather than understated.

March 2007 BAI pushes for the sale of KEB to Lone Star to be nullified.

June 2007 Lone Star reduces its stake in KEB by 11.3 per cent to 51 per cent.

August 2007 HSBC says it is in talks to buy Lone Star’s controlling take in KEB.

The big picture:

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