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HSBC Might Withdraw From KEB Purchase: FT

Posted May. 27, 2008 08:53,   


The Financial Times reported yesterday that HSBC is considering walking away from its long-delayed takeover of Korea Exchange Bank if the government does not approve the deal within weeks.

The daily quoted an anonymous source familiar with the bank’s internal affairs as saying, “HSBC would likely look elsewhere if there is no movement within weeks.”

It added that the British banking giant is hoping this week’s visit to the United Kingdom by senior government members including Jun Kwang-woo, chairman of the Financial Services Commission, would help break the logjam.

A senior official of HSBC Korea said, “HSBC still wants to acquire KEB. We are, however, hoping for positive news since FSC officials are likely to meet with HSBC during their U.K. visit.”

Last month, HSBC and Lone Star Funds announced that the deadline for the purchase of a majority stake of KEB would be extended by three months until late July.