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Asia-PacificJanuary 2 2008

HSBC plays waiting game on KEB deal

The acquisition by international giant HSBC of the Korea Exchange Bank would benefit both parties, but is politically sensitive. Stephen Timewell reports.
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Back in September 2007, a deal was agreed whereby London-based HSBC would buy 51% of Korea Exchange Bank (KEB) for $6.3bn from US buyout firm Lone Star Funds. But while the deal makes good strategic sense both for Korea’s fifth largest bank and for HSBC, the world’s third largest bank, its completion remains mired in controversy and at the mercy of the regulators.

Past disagreement

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