KDB Financial eyes takeover of foreign bank

SEOUL, Nov. 8 (Yonhap) -- KDB Financial Group Inc., a South Korean state
financial holding company, is setting its sights on a Southeast Asian bank
instead of buying Korea Exchange Bank (KEB), the group's chief said Sunday.
"KDB Financial is interested in the Asian market and currently watching two or
three banks around Southeast Asia," Chairman Min Euoo-sung told Yonhap News
Agency. "KDB Financial is basically more interested in overseas banks than KEB."
Buying out KEB would also be prohibitively expensive, as its shares rose nearly
three-fold to around 14,000 won (US$12) from late last year, Min said.
Min's remarks are not in line with market speculation that KDB Financial is
interested in taking over KEB to diversify the state-owned lender's funding
sources. KEB is currently owned by U.S. buyout fund Lone Star Funds.
Min said KDB Financial will try to wrap up the purchase of an overseas bank by
2010 in the run-up to the company's envisioned stock market listing in following
years.
"A success in a takeover could fetch higher prices when the company goes public,"
the chief said.
The chairman said in October that KDB Financial aims to list its stocks on the
local bourse in 2011 and in overseas markets the next year.
KDB Financial Group was created Oct. 28 as the holding company for the state-run
Korea Development Bank and four other affiliates as part of a government plan to
make it publicly traded company.
pbr@yna.co.kr
(END)