Tag: lone star

HSBC’s dream of a leap forward in Korea’s banking market is dashed by a failure to renegotiate terms with Lone Star. Asian investors led by Temasek shore up Merrill's equity capital base, while the US investment bank extends debt funding to Lone Star so that it can take CDO exposure off ... HSBC continues in its quest to expand in Korea, while Lone Star hopes to finally make an exit from a debilitating investment. The revived Tokyo Star Bank may face plenty more trades yet as private equity players show mastery in extracting profits. Chung Tong-soo, the head of Invest Korea, says he hopes HSBC's bid will get regulatory approval “sooner rather than later”. HSBC may acquire Lone Star's 51% stake in KEB, but onlookers remain sceptical that the deal will progress given previous hiccups. The placement comes after the sale of a controlling stake to Kookmin was abandoned, but sources say it doesn't signal a change of exit strategy for the US private equity firm.