KorAm Bank on the march

KORAM Bank swung into focus as the battle for a controlling stake in

Emerging markets lender Standard Chartered, which owns about 10% of KorAm, wants to buy more shares, a central bank official was quoted saying. Those comments put 600 won or 4.2% on the target company, with its shares trading at 15,000 won.

Standard Chartered is understood to be vying for a 36.6% stake in KorAm put on block by The Carlyle Group, which bought in three years ago and is now seeking a profitable exit. The stake has been valued at about £580m.

Citigroup, the US banking giant, and the increasingly acquisitive investment arm of the Singapore government, Temasek, are also in the running. The Temasek team has roped in assistance from Kookmin Bank, South Korea's top lender, although the exact nature of their partnership is unclear.

Also in the running - at least in the early stages - was HSBC. But recent comments from its chairman have cast some doubt on the British group's willingness to stay in the contest.

'Some of the players are financial investors who have high price expectations,' Sir John Bond said at a strategy briefing late last month, in what was taken as a reference to Carlyle. 'Acquisitions look pricey [in South Korea].'

Also featuring on the gainers' board was Ssangyong Motor, the sports utility vehicle maker that has been undergoing a debt restructuring programme for the past three years. In essence, the company is up for grabs.

It pepped up 520 won or 5.6% to 9860 won after General Motors acknowledged it had thrown its hat into a crowded ring. There could be as many as 10 contenders.

The Korea Composite Stock Price Index slipped as technology stocks dipped following profit-taking in their US peers overnight. The main benchmark gave up 2.75 points to 805.59, with tech bellwether Samsung Electronics down 7000 won or 1.5% to 464,000.

Hong Kong conglomerate Hutchison Whampoa dropped HK$1.25 or 2.2% to HK$55.75 as it confirmed what many had suspected - its vast gamble on third-generation mobile phones could require more cash than expected.

The group's finance director Frank Sixt reportedly said handset delivery delays would swell costs by up to e2bn (£1.4bn). Hutchison has plenty of cash on hand and more is being thrown off by its other profitable divisions, but the fresh estimates underscore the tricky gamble being taken by owner Li Ka-shing.

Investors locking in recent gains took the wind out of the market's sails. Sun Hung Kai Properties dipped 25 cents to HK$64, while Cheung Kong fell 25 cents to HK$61. The Hang Seng index was off 1.88 points at 12,359.30.

Tokyo was led higher by office equipment maker Canon, which is reportedly set for a joint venture with Toshiba to make new flatpanel screens. Canon gained 130 yen or 2.6% to 5180 yen, while Toshiba rose eight yen or 2% to 417.

Car makers rebounded on hopes of better US sales. Honda Motor was up 130 yen or 3% at 4500. The Nikkei 225 firmed 103.60 points to 10,429.99.

Thai stocks, the region's best performers, made a fresh run back towards their year high amid hopes for continued strong economic growth. Aided by foreign buying, the SET index rose 4.45 points or 0.7% to 663.88.