US investment fund seeks to sell Korea Exchange Bank to HSBC: report

SEOUL, Nov 23 (AFP) - US investment fund Lonestar has offered to sell its controlling stake in Korea Exchange Bank to London-based financial giant HSBC Holdings Plc, an economic daily said here Tuesday.
Citing banking sources and financial watchdogs, the Maeil Business newspaper said Lonestar offered to sell the 50.53 percent stake in Korea Exchange Bank last month to HSBC.
The report came as HSBC has been engaged in talks with US investment firm Newbridge Capital which offered to sell another South Korean bank, Korea First Bank, to HSBC.
The new proposal has given HSBC a strong negotiating position in its talks with Newbrdige Capital, the daily said.
Lonestar completed its acquisition of Korea Exchange Bank last October last year and its two-year lock-up period expires in November 2005, enabling it to divest from the bank.
Newbridge Capital said it had been in talks with HSBC to sell its 48.56 percent controlling stake in Korea First Bank, the South Korean bank said Monday.

11/23/2004 02:58 GMT - AFP