Lone Star has terminated a $7.3 billion agreement to sell its controlling stake in Korea Exchange Bank to Kookmin Bank because of continuing prosecutors’ investigations into the private equity firm’s investment in 2003.
John Grayken, Chairman of Lone Star Funds, said: “We have concluded that we cannot move forward with the sale of KEB to Kookmin Bank due to the continuing investigations surrounding Lone Star’s investment in KEB and KEB’s subsequent rescue of its credit card subsidiary, which have been extended several times and now have no firm completion date.”
