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Lone Star decides against Korean court appeal - report

  • Anita Davis
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Lone Star has reportedly decided against appealing a Korean court’s ruling that it should pay KRW25 billion ($21 million) for manipulating the stock prices of the Korea Exchange Bank in 2003.

According to Reuters, the sale of KEB to Hana Financial Group, which has sought to buy Lone Star's 51% stake in the asset for a year, could be finally reach an end.

Lone Star acquired its majority 51% stake in the bank for $1.3 billion in 2003 and has been looking to exit for five years. However, regulators repeatedly blocked and stalled the process until it could resolve issues surrounding the purchase of the bank. Hana Bank is the leading contender to acquire Lone Star's shares, offering to pay $4.2 billion last year. Regulators have yet to decide on the transaction.

Hana's chairman has expressed willingness to renegotiate its $4.1 billion offer in light of KEB's falling share prices linked to the economic volatility seen in the past year.

Meanwhile, Paul Yoo, former head of Lone Star in Korea, has appealed to Korea's Supreme Court over his three-year sentence for spreading rumors about KEB's credit card unit, KEB Credit Services, to diminish its share price, making it cheaper for acquisition.

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