Report: Lone Star Scraps KEB Stake Sale

(Reuters) – U.S. private equity firm Lone Star [LS.UL] has decided to scrap its plan to sell a majority stake in Korea Exchange Bank (004940.KS) worth $4 billion at the current market price due to weak demand from potential investors, a local paper said.

“Lone Star told financial investors in the United States, Hong Kong and Europe that it will delay the sale of KEB indefinitely,” the Seoul Economic Daily quoted an unnamed private equity source close to the deal as saying.

KEB had no official comment and Lone Star was not immediately available for comment. (Reporting by Miyoung Kim; Editing by Jacqueline Wong)