Woori Finance Holdings jumps on talk of takeover target

SEOUL, June 16 (Yonhap) -- Woori Finance Holdings Co. surged 3.29 percent on
Wednesday after the chairman nominee for South Korea's top banking group singled
out its key subsidiary as a takeover target, analysts said.
Shares of Woori Finance traded at 15,750 won (US$13) on the Seoul main bourse as
of 11:06 a.m., up 3.62 percent from Tuesday's close. The wider benchmark index
KOSPI gained 0.46 percent.
After being tapped to head KB Financial Group Inc. Tuesday, Euh Yoon-dae, a close
ally of President Lee Myung-bak, said, "I will consider joining the race to take
over Woori Bank when it is put up for sale."
Woori Bank's diverse business portfolio has grabbed his interest and KB Financial
can buy the lender by exchanging shares of the two companies, he said.
Woori Bank is the flagship bank unit of the state-owned Woori Finance Holdings.
The Financial Services Commission, the top financial regulator, is seeking to
unveil its plan to sell a 57 percent government stake in the banking group by the
end of June.
The government reportedly plans to split the financial group into several units
to relieve potential buyers' cost burden and expedite the sale.
Euh also said he is not interested in Korea Exchange Bank, the fifth-largest
lender in South Korea that has been put up for sale by its biggest shareholder
Lone Star Funds, a U.S. private investment fund.
"Realistically, there are no local banks able to afford the 4-5 trillion won
needed to take over Korea Exchange Bank," Euh said.
Shares of Korea Exchange Bank were down 0.39 percent to 12,900 won as of 11:06
a.m. while KB Financial shares fell 2.34 percent to 50,000 won.
pbr@yna.co.kr
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