KDB Financial eyes takeover of foreign bank

KDB Financial Group Inc., a Korean state financial holding company, is setting its sights on a Southeast Asian bank instead of buying Korea Exchange Bank (KEB), the group`s chief said Sunday, according to the Yonhap News.



"KDB Financial is interested in the Asian market and currently watching two or three banks around Southeast Asia," Chairman Min Euoo-sung told Yonhap News Agency. "KDB Financial is basically more interested in overseas banks than KEB."



Buying out KEB would also be prohibitively expensive, as its shares rose nearly three-fold to around 14,000 won ($12) from late last year, Min said.



Min`s remarks are not in line with market speculation that KDB Financial is interested in taking over KEB to diversify the state-owned lender`s funding sources. KEB is currently owned by U.S. buyout fund Lone Star Funds.



Min said KDB Financial will try to wrap up the purchase of an overseas bank by 2010 in the run-up to the company`s envisioned stock market listing in following years.



"A success in a takeover could fetch higher prices when the company goes public," the chief said. The chairman said in October that KDB Financial aims to list its stocks on the local bourse in 2011 and in overseas markets the next year.