Approval for HSBC?
HSBC Holdings, Europe's biggest bank by market value, won antitrust approval in Seoul for its $6.45 billion takeover bid for Korea Exchange Bank.
“The Fair Trade Commission analyzed the merger effects of HSBC and Korea Exchange Bank's products in eight markets, and concluded that there aren't any breaches of antitrust regulations,” the government agency said in an e-mailed statement.
The success of the London-based bank's offer now hinges on disputes between U.S. buyout firm Lone Star Funds, the majority owner of Korea Exchange Bank, and South Korean prosecutors. The Financial Supervisory Service has withheld final approval of the takeover pending court appeals, including one from Paul Yoo, the Lone Star South Korea head who was jailed for stock price manipulation.
A Seoul court found Yoo guilty of manipulating the price of Korea Exchange's credit card unit in 2003 to acquire the business at a knockdown price. Lone Star and Korea Exchange were also found guilty of the same charge, and each fined 25 billion won ($26 million). All parties said they will appeal the rulings.
Separately, prosecutors allege Lone Star's 2003 takeover of Korea Exchange Bank, South Korea's fifth-largest by market value, was engineered at an artificially low price through a political conspiracy.
“The Fair Trade Commission conclusion is not related to the Financial Supervisory Service's final approval for the takeover of Korea Exchange Bank by HSBC,” the regulator's statement said.
HSBC Chairman Stephen Green said that the bank is hopeful it can complete the takeover of Korea Exchange Bank by an April deadline that it and Lone Star set.
“We welcome the findings of the commission,” Vinh Tran, a Hong Kong-based spokeswoman for HSBC, said. “The transaction remains subject to the approval of the Financial Supervisory Service and we will work with the regulators.”
Will the takeover take place on schedule?
“The Fair Trade Commission analyzed the merger effects of HSBC and Korea Exchange Bank's products in eight markets, and concluded that there aren't any breaches of antitrust regulations,” the government agency said in an e-mailed statement.
The success of the London-based bank's offer now hinges on disputes between U.S. buyout firm Lone Star Funds, the majority owner of Korea Exchange Bank, and South Korean prosecutors. The Financial Supervisory Service has withheld final approval of the takeover pending court appeals, including one from Paul Yoo, the Lone Star South Korea head who was jailed for stock price manipulation.
A Seoul court found Yoo guilty of manipulating the price of Korea Exchange's credit card unit in 2003 to acquire the business at a knockdown price. Lone Star and Korea Exchange were also found guilty of the same charge, and each fined 25 billion won ($26 million). All parties said they will appeal the rulings.
Separately, prosecutors allege Lone Star's 2003 takeover of Korea Exchange Bank, South Korea's fifth-largest by market value, was engineered at an artificially low price through a political conspiracy.
“The Fair Trade Commission conclusion is not related to the Financial Supervisory Service's final approval for the takeover of Korea Exchange Bank by HSBC,” the regulator's statement said.
HSBC Chairman Stephen Green said that the bank is hopeful it can complete the takeover of Korea Exchange Bank by an April deadline that it and Lone Star set.
“We welcome the findings of the commission,” Vinh Tran, a Hong Kong-based spokeswoman for HSBC, said. “The transaction remains subject to the approval of the Financial Supervisory Service and we will work with the regulators.”
Will the takeover take place on schedule?
posted by Charltonmedia.com @ 9:35 AM
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