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...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.