KEB labor union files Hana takeover injunction

Union claims KEB board directors' collaboration with Hana was illegal.

Korea Exchange Bank's labour union has filed an injunction seeking to prevent Hana Financial Group from buying a controlling stake in the company.

The legal action, aimed at scrapping the $4.1 billion deal, is common for labor unions during corporate acquisitions, as workers fear losing jobs and wage cuts from takeovers, according to a Reuters report.

The union said in a statement that KEB board directors' cooperation with local rival Hana was against the law. A Hana spokesman declined to comment on the move. In November, Hana agreed to buy a 51 percent stake in KEB for $4.1 billion from U.S. fund Lone Star, a deal giving Hana more muscle to compete in the saturated local banking sector.