HSBC Holdings said today it was in talks to buy a majority stake in Korea Exchange Bank (KEB) worth $4.8 billion from Lone Star.
HSBC, which has tried repeatedly to buy a bigger presence in the South Korean banking market, said it planned to maintain KEB's name and listing status if a deal was completed.
The sale process has dragged on amid a protracted legal dispute between Dallas-based private equity fund Lone Star, which holds 51 per cent of KEB, and South Korean authorities.
The legal disputes forced Lone Star to cancel a $7.3 billion deal last year to sell KEB, South Korea's fifth-largest bank, to Kookmin Bank, South Korea's top lender.
Foreign banks keen to enter Korea may find that acquisitions might be the only option left to them, given the South Korean government's reluctance to allow new entrants into the crowded banking sector.
