KDB to normalize Asiana amid potential M&A break-up

Korea Development Bank (KDB) will normalize operation of Asiana Airlines if Hyundai Development Company (HDC) backs out of its takeover deal with the cash-strapped airline, the state-run lender said Monday. "As a main creditor of Asiana, we are considering a number of options to normalize the business operations of the airline under the scenario that the suggested but pending acquisition proposal between the interested parties comes to nothing," KDB Vice President Choi Dae-hyun said. The message came amid the growing likelihood that HDC would not proceed with the takeover contract with Asiana at a time when the former continues to take what KDB deemed to be "unreasonable steps" to delay the M&A procedure. Late last month, HDC demanded time to carry out an additional 12 weeks of due diligence on Asiana before finalizing the deal, but it did not provide any convincing reasons to back up the demand. Earlier, HDC already ended its due diligence on the airline after seven weeks. "Our top priority is to normalize management of Asiana," Choi said. "If HDC decides to cancel the deal with Asiana, we are going to focus on stabilizing the company and then push for its sale to a third party." He added the bank is leaving open all possibilities ― including selling the firm to a conglomerate or affiliate.<br/>