HSBC stands firm on Korea Exchange Bank deal

Sun Aug 3, 2008 6:01pm BST

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LONDON (Reuters) - Europe's biggest bank HSBC (HSBA.L) said on Sunday it stood firm on a deal to buy a 51 percent stake in Korea Exchange Bank (004940.KS), after a deadline for approval from Korea's Financial Services Commission passed on Thursday.

"This is a deal we want to do," an HSBC spokesman told Reuters. "It is in our interests to be patient to get the deal done."

The long-running deal, valued at $6.3 billion (3.2 billion pounds), is seen as a test of whether South Korea is genuine in its pledge to open its financial sector to international investors.

HSBC agreed to buy the stake from U.S. private equity firm Lone Star last September, but either could walk away if they did not get regulatory clearance by July 31.

HSBC said neither HSBC Asia nor Lone Star had terminated the agreement, and both parties were discussing the next step.

(Reporting by Paul Sandle; editing by Sue Thomas)

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