Law firm rivalry adds drama to Hana-KEB deal

By Kim Jae-won

Hana Financial Group’s attempt to absorb Korea Exchange Bank (KEB) appears to have resulted in a showdown between two prominent Seoul-based law firms.

Kim & Chang, widely considered as the country’s biggest and most influential law firm, has been hired by Hana to help it acquire a controlling stake in KEB from Texas-based Lone Star Funds. Its smaller rival Daeryook & Aju sits with KEB’s labor union, which has vowed to do everything possible to derail Hana’s takeover bid.

Hana signed a 4.7 trillion won deal with Lone Star to purchase its 51 percent stake in KEB last November, and awaits approval from the Financial Services Commission (FSC), which will announce its decision on March 16.

KEB unionists have been protesting against the deal, citing concerns over Hana’s financial capability to absorb their company, and has been threatening collective action should the takeover go through.

Daeryook & Aju versus Kim & Chang could be described as a prototypical David against Goliath battle, and the former is hoping it can repeat the biblical result.

Kim & Chang has a proven track record in merger and acquisition (M&A) deals, leading all law firms by number of cases taken and total value of the deals, according to data from the Financial Times. But despite its small size, Daeryook & Aju has a reputation for punching above its weight, as it ranked sixth among local law firms in M&A rankings as of March 2009.

It’s often the underdog that draws first blood, and Daeryook & Aju did just that by setting up a speed bump in Hana’s takeover process. Four existing shareholders of Hana, three of them KEB unionists, filed a lawsuit with a Seoul court recently, accusing Hana of ``intruding’’ on the rights of its shareholders by offering new shares to ``unessential’’ investors. Apparently, the lawsuit was part of Daeryook & Aju’s ploy.

The new shares were supposed to be released on Feb. 28, but the Korea Exchange, the nation’s stock exchange agency, said it put off the listing until legal issues are resolved. Issuing the new shares is critical for Hana Financial, which wants to pay Lone Star with the money raised this way.

Kim & Chang counterattacked. The law firm advised Hana to file a complaint with a Seoul court to lift the suspension. Kim & Chang said issuing new shares does not hurt shareholders’ interests in a report to Hana.

On Tuesday evening, the Seoul Southern District Court ruled in favor of Daeryook & Aju, or David, if you like.

The court declined Hana’s motion saying “The Korea Exchange has the right to examine the process of issuing new shares to protect public interest and investors.”

Now, the battle between the two law firms has become even more intriguing, with industry watchers wondering what card Hana and Kim & Chang will play next.

로펌 대결, 하나금융-외환노조 싸움에 재미 더해

외환은행을 인수하려는 하나금융그룹의 시도가 두 로펌간의 싸움으로 번지고 있다.

한국에서 가장 크고 영향력 있는 김앤장은 하나금융이 론스타로부터 외환은행의 지배지분을 살 수 있도록 돕고 있다. 반면 김앤장보다 좀더 작은 규모의 대륙아주는 외환은행 노조 편에 섰다. 외환노조는 하나금융의 인수를 저지하기 위해 총력 투쟁을 펼치고 있다.

하나금융은 지난 11월말 론스타가 보유하고 있는 외환은행의 51% 지분을 4.7조원에 사기로 계약하고, 금융위원회의 승인을 기다리고 있다. 금융위는 오는 16일 이 건에 대해 발표할 예정이다.

외환노조는 하나금융이 외환은행을 인수할 자본력이 없다며 이 계약에 반대하는 투쟁을 계속 펼쳐왔다. 외환노조는 이 인수가 계속 진행된다면, 집단행동도 불사할 것이라고 강조해왔다.

대륙아주와 김앤장의 대결은 다윗과 골리앗의 싸움이라 할 만하다. 대륙아주는 성경에서 일어났던 일이 자신들에게도 나타나기를 바라고 있다.

김앤장은 인수합병 분야에서 좋은 기록을 보여주었다. 파이낸셜타임즈에 따르면 김앤장은 작년 인수합병 자문 건수와 자문 액수 분야에서 모두 국내 1위를 기록했다. 대륙아주 역시 작은 규모에도 불구하고 강한 펀치를 소유하고 있다는 평을 듣고 있다. 대륙아주는 2009년 1분기에 인수합병 분야에서 국내 로펌 중 6위를 기록했다.