KEB surges after HSBC agrees majority stake buy

Korea Exchange Bank (KEB) shares surged up to 5.1 percent on Tuesday as HSBC’s move to buy a controlling stake was seen bolstering its competitiveness in Asia’s third-largest banking market.

But rival Kookmin Bank fell 1.6 percent to 75,200 won as HSBC Holding’s Plc.agreement on Monday to buy a 51 percent stake in KEB from private equity fund Lone Star threatened to take away an asset long coveted by South Korea’s biggest lender.

“If HSBC takes over, KEB could become more competitive against other banks in Korea and that would benefit minority shareholders,” said Koo Kyung-whe, an analyst at Hyundai Securities.

KEB shares gained 4.5 percent to 15,250 won by 0035, compared to a 0.48 percent gain in the main KOSPI .

Reuters