Korea Development Bank quits bid for Siam City

HSBC, Bank of Nova Scotia and Hong Leong remain as bidders after KDB saw potential risks.

KDB, in an e-mailed statement, said on Monday that the terms of the deal may pose risks without providing details.

Korea Economic Daily reported earlier Feb. 1 that KDB had canceled its plan to bid for a stake in Siam City, citing a bank official that it didn't identify.

Chief Executive Officer Min Euoo Sung said in November he aims to buy at least two lenders in Asia this year as South Korean President Lee Myung Bak pushes for privatisation of state-owned lenders to boost competition, as stated in a report in Bloomberg.

Thailand's central bank is seeking about $1 billion for its 47.6 percent stake in Siam City, people privy to the matter said in November.