Lone Star Guilty Of Market Manipulation In Korea

Oct 7 2011 | 11:52am ET

A Korean court has rapped private equity firm Lone Star Funds for manipulating the stock price of a bank in which it owns a controlling stake.

The Seoul court fined a Lone Star unit US$21 million and sentenced the former head of its South Korean office, Paul Yoo, to three years in prison. On the bright side, the ruling appears to clear the way for Lone Star to sell its stake in Korea Exchange Bank to Hana Financial Group for US$4.1 billion.

That deal had been held up by the court proceedings, and even if it were not in place, would likely be required by the court, which will probably disqualify Lone Star as KEB's largest shareholder, forcing it to reduce its stake to 10%.

KEB itself was acquitted in the retrial, which was triggered by allegations that Yoo spread falsehoods about a possible capital reduction at KEB's credit card unit in 2003.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.