MBK Partners eyes bidding for KEB stakes

Reports say company in initial stage of negotiation to acquire 51% KEB stake amounting $3.6bln.

Private equity house MBK Partners is in the early stages of talks to make a possible bid for Lone Star's 51 percent stake in Korea Exchange Bank (KEB), valued at around $3.6 billion, the Wall Street Journal reported.

The newspaper's online edition on Friday cited an unidentified source familiar with the situation, but it did not give details on whether MBK might go alone with the bid or find a strategic investor in what would be South Korea's biggest banking deal this year.

MBK was not immediately available for comment.

U.S. private equity firm Lone Star bought a majority stake in KEB for $1.2 billion in 2003, and relaunched its sale attempt for the third time early this year after failing twice earlier.

View the full story in Reuters.