By Kim Yeon-hee Tue Jun 24, 5:47 AM ET SEOUL (Reuters) - A South Korean high court on Tuesday cleared U.S. private equity house Lone Star of manipulating the stock price of a former credit card firm, removing an obstacle to HSBC's $6.3 billion deal to buy control of Korea Exchange Bank.The verdict, rejecting an earlier judgment, reduces legal uncertainties for Lone Star (LS.UL) and raises hopes for UK-based HSBC's (HSBA.L) purchase of KEB (004940.KS) from the U.S. company, a deal seen as a major test of South Korea's openness to foreign investors.
While the stock price manipulation case is the only legal issue involving Lone Star directly, former government officials and executives of KEB still face allegations that Lone Star's 2003 purchase of KEB was illegal. A verdict on that case is expected by the end of the year.
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