HSBC will declare KEB plans "when appropriate"

Thu Jul 31, 2008 5:31pm BST

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LONDON (Reuters) - Bank HSBC (HSBA.L) said it did not receive regulatory approval to buy a majority stake in Korea Exchange Bank by a deadline on Thursday, and it would make a statement on its plans "when appropriate".

HSBC had agreed to buy a 51 percent stake in KEB for $6.3 billion (3.1 billion pounds) from U.S. private equity firm Lone Star, but either it or Lone Star could terminate the deal if they did not receive regulatory clearance by a July 31 deadline.

HSBC said in a statement: "We believe in the long term prospects for Korea, we have a good business there already, and wish to play a major part in the country's further development."

It declined to comment further.

(Reporting by Steve Slater)

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