Lone Star Gives Up On Bank Sale

Law360, New York (November 27, 2006, 12:00 AM EST) -- After litigation from Korean authorities delayed the deal numerous times, Texas-based Lone Star Funds has decided to terminate its $7.4 billion agreement to sell the Korea Exchange Bank to Kookmin Bank.

The decision comes after the Korean Special Prosecutor’s Office indicted KEB and Lone Star for allegedly orchestrating a stock manipulation scheme that allowed the fund to acquire the bank for a below market price.

Korean prosecutors also issued warrants for Lone Star vice chairman Ellis Short and general counsel Michael Thompson in an ongoing investigation...
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