Korea Exchange Bank pursued by other banks
As economy improves, CEOs of other South Korea banks are eyeing to merge with KEB.
Currently, Korea Exchange Bank (KEB), Prudential Investment & Securities and Prudential Asset Management, among others, are on sale, with multiple parties showing interest in acquiring them.
In particular, the nation's fifth largest lender, controlled by U.S. private equity fund Lone Star Funds, is attracting keen attention from Kookmin Bank, the Korea Development Bank (KDB) and other leading banks in South Korea for its expertise in foreign exchange dealing and extensive overseas networks. Lone Star CEO John Crayken recently said he would like to dispose of a 51.02 percent controlling stake in KEB in 2010.
According to a report in Korea Times growing interest in KEB is expected to force the acquirer to pay much higher than the bank's market value. But it will make Lone Star Funds, which has tried to unload its KEB stake for years, happy as it has not been able to so because of legal troubles in South Korea.
Among potential buyers of KEB, Kookmin Bank is said to lead the pack as the nation's largest retail lender has long been saying that it would like to have another shot at taking it over in a bid to emerge as a globally competitive financial institution.