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Reuters – U.S. private equity house Lone Star is seriously considering suing the South Korean government if it delays approval beyond September of the firm’s $6.3 billion sale of shares in a local bank, a newspaper reported on Friday.
English language daily The Korea Times said Lone Star was mulling a suit claiming losses from the government for delaying the sale of shares in Korea Exchange Bank.
Lone Star’s PR agency in Seoul declined to comment and a lawyer representing Lone Star was not available for immediate comment.
Last September, Lone Star LS.UL agreed to sell its 51 percent stake in KEB the country’s No. 6 lender, to UK-based HSBC for $6.3 billion.
But HSBC’s offer lapsed on July 31, with the government delaying approval of the KEB sale, citing legal uncertainties relating to Lone Star’s South Korean activities. The deal is still awaiting regulatory approval.
"Beleaguered with growing complaints from investors, Lone Star is considering returning its KEB shares in-kind to investors as one possible option, together with a block sale option," the Korea Times cited an unnamed source close to the deal as saying.
Reuters India – Goldman Sachs said it has regulatory approval to launch mutual funds in India, Asia’s third-largest economy, joining the likes of AIG, JPMorgan and South Korea’s Mirae Asset who have started operations in the past 18 months.
Adam Broder will be the chief executive of Goldman Sachs Asset Management Company (India) and Prashant Khemka will be chief investment officer, the firm said in a statement on Monday.
"India is one of the most important countries to our Asian business and we have a long-term strategic commitment to this market," Broder said.
India’s 35 member funds industry managed about 5.4 trillion rupees at the end of July, data from the Association of Mutual Funds in India showed.
While the industry has been hit by a fall of about 30 percent in the Indian stock market this year, Boston Consulting Group has forecast assets could more than quadruple by 2015.
New York (HedgeCo.Net) – Inmarsat shares took a dive yesterday after hedge fund Harbinger Capital halted talks of a possible takeover. Harbinger has amassed a 28 percent stake in the U.K.-based mobile satellite communications group.
Harbinger, who has AUM upwards of $26 billion, decided to hold off after considering the lengthy process ahead in which they would have to gain clearance from the FCC.
“Harbinger remains interested in acquiring control of Inmarsat and is therefore actively considering whether to pursue the relevant regulatory and competition approvals in order to be able to make an offer for Inmarsat in the future,” the company said.
The hedge fund expressed interest in the company in hopes that Inmarsat might contribute to a U.S development of a satellite-based mobile phone network.
“Assuming there is an acceptable conclusion to the regulatory approval process, Harbinger would intend to re-enter into discussions with the board of Inmarsat regarding the terms of an offer and endeavour to seek a recommendation from the Inmarsat board at that time,” they added.
Harbinger isn’t the only hedge fund as of late to accumulate shares in Inmarsat. Landsdowne Partners and Lehman Brothers have also been tapping into this market in hopes of consolidation in the industry.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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Reuters- U.S. hedge fund Harbinger remains interested in buying British satellite communications firm Inmarsat, but is suspending talks for now because of the lengthy regulatory process involved, it said on Monday.
"Harbinger remains interested in acquiring control of Inmarsat and is therefore actively considering whether to pursue the relevant regulatory and competition approvals in order to be able to make an offer for Inmarsat in the future," the group, which already owns 28 percent of Inmarsat, said in a statement.
"Assuming there is an acceptable conclusion to the regulatory approval process Harbinger would intend to re-enter into discussions with the board of Inmarsat regarding the terms of an offer and endeavor to seek a recommendation from the Inmarsat board at that time."
