Lone Star Stock Fraud Ruling Clears Way For KEB Sale

Law360, New York (October 6, 2011, 3:37 PM EDT) -- The Seoul High Court reportedly found the former regional head of buyout firm Lone Star Funds guilty of manipulating Korea Exchange Bank stock and fined the firm $21 million, but the Thursday ruling also lets Lone Star finally sell its stake in the bank to Hana Financial Group Inc. for $3.7 billion.

The South Korean court held on retrial that former Lone Star executive Paul Yoo spread rumors enabling the company to pocket KEB’s credit card unit on the cheap and merge it with the previously-acquired...
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