S.Korea Gov't to Review 2003 Credit Card Unit Deal

by Mike Bevel, CollectionIndustry.com

Things may not be entirely on the up-and-up between Korea Exchange Bank (KEB) and U.S. buyout fund Lone Star. Allegations of share price manipulation are haunting the two.

The probe by the Financial Supervisory Service (FSS) could become yet another obstacle to the planned $7.34 billion sale of KEB to Kookmin Bank.

The FSS is alleging that KEB had spread rumors about a possible consolidation of KEB Credit Service Co. shares in 2003 in the hope of lowering the share price of the former unit, and thus the unit’s acquisition price.

Kim Yong-hwan, a director general at the Financial Supervisory Commission (FSC), told reporters in a briefing that it was holding a securities committee meeting on Wednesday morning to review the probe and report to prosecutors.

The full Reuters story can be found at S.Korea Gov’t to Review 2003 Credit Card Unit Deal.