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Wednesday, May 18, 2011

Hana "speechless" as S.Korea delays Lone Star-KEB decision again

Hana Financial , which wants to purchase Korea Exchange Bank (KEB) in what could be South Korea's largest banking deal, is to review its options on Friday after financial regulators again delayed a decision on whether current majority owner Lone Star is fit to be KEB's top shareholder. The delay dealt a blow to the U.S. fund's attempt to exit from South Korea after years of failure and could trigger anger from investors who coughed up 1.46 trillion Korean won ($1.4 billion) for Hana Financial Group to fund the purchase of a 51 percent stake from Lone Star. With the regulatory approval for the deal now unlikely in May, both Lone Star and Hana would be free to walk away from the deal if the transaction is not completed by May 24. Hana Financial Chairman Kim Seung-yu told Reuters after Thursday's decision that it would hold a board meeting on Friday to decide follow-up measures.

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