Korea Exchange Bank union objects Hana's takeover

4,000 employees are expected to join to protest Hana’s takeover as it conducted due diligence on KEB.

Hana Financial Group’s plan to buy a controlling stake in Korea Exchange Bank (KEB) has met staunch opposition from KEB’s labor union.

"Hana Financial Group does not have the management ability to properly manage Korea Exchange Bank’s assets, finances and personnel,’’ the KEB labor union said, Friday.

Last week, Hana Financial, the country’s fourth largest financial services company, said it has signed a memorandum of agreement with Lone Star to purchase its 51.02 percent stake in KEB. The stake is estimated to be worth around $3.8 billion based on the current share price.

Hana Financial is conducting due diligence on the bank and will finalize the deal on Nov. 26. Hana would still have to get the required nod from the Financial Services Commission before the deal could be completed.

The KEB labor union is planning protests against the deal between U.S. private equity firm Lone Star and Hana Financial Group.

As a sign of revolt, KEB employees wore plain clothes instead of their uniforms to work, Friday.

View the full story in the Korea Times.