Citigroup agrees to take over KorAm Bank

SEOUL, South Korea (AP) -- U.S. financial services giant Citigroup has agreed to buy KorAm Bank, South Korea's sixth-largest lender, for up to $2.73 billion in what would be the first such takeover here by a foreign banking company. The deal would cost up to 3.18 trillion won and would be the first takeover of a Korean bank by a foreign commercial lender. It still must gain regulatory approval.
Under the agreement, Citigroup would acquire a 36.6-percent stake in KorAm that's held by a consortium led by U.S.-based Carlyle Group and JP Morgan Corsair II and offer to buy all remaining shares at a price of 15,500 won ($13.28) per share.