Korean Court Finds Lone Star Funds, Exec Guilty

Law360, New York (February 1, 2008, 12:00 AM EST) -- A South Korean court found American private equity group Lone Star Funds and one of its top executives guilty of stock manipulation in the ill-fated 2003 acquisition of Korea Exchange Bank.

The court found on Friday that Lone Star had made a profit of 10 billion won ($10.554 million) when it announced that KEB's credit card unit, KEB Card Services, would reduce its capital. The unit's share price then dropped, allowing Lone Star to buy it up at a cheaper price, according to local reports....
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