HSBC Seeks Approval Of New Pro-Business Administration For KEB Takeover
HSBC has sought to take advantage of the changing of the political guard in
South Korea to secure approval for its proposed takeover of the Korea Exchange
Bank (KEB). The KEB is currently the subject of a long-running dispute which has pitted
its owner, US-based private equity firm Lone Star, against the Korean tax authorities,
and this dispute has stalled HSBC's plans to increase its Asian presence with
a significant purchase in Korea. However, following the victory of Lee Myung Bak, widely acknowledged as more
pro-business than his predecessor, in the recent presidential elections, HSBC
is attempting to move the matter forward. Speaking to the Times Online, David Hall, HSBC's head of public affairs in
Asia, announced that: “We hope the regulators will consider the KEB acquisition issue independently
from any other issues. We believe the regulators will carefully review our application.”
Talks over the acquisition of Lone Star's controlling stake in KEB began in
September, and the negotiating deal may be scrapped if the Korean authorities
cannot be persuaded to approve the takeover by the end of April 2008. Observers are suggesting, however, that the dispute between Lone Star and the
Korean government over the former's allegedly outstanding tax liabilities is
not likely to be resolved any time soon.
|
|
IMPORTANT NOTICE: TAX-NEWS.COM has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright TAX-NEWS.COM 1999 to 2007. Contact us for further information.