[THE INVESTOR] Delays in the final bidding for the Korean unit of ING Life Insurance are fueling speculations the sale may through, or that MBK Partners will scrap the sale.

According to finance industry sources, Morgan Stanley, which is overseeing the sale, had originally planned to receive bids until Aug. 12. However, with a number of candidates experiencing delays, bids are to be accepted until the end of the week. 

MBK Partners, which is selling its stake in ING, is said to prefer strategic investors over financial investors in consideration of the new majority stakeholder needing the Financial Services Commission’s approval.

In addition to the delays experienced by the bidders, market watchers say that the disparity between the price MBK Partners desires and the bids may be also causing delays.

According to industry sources, MBK Partners is hoping for bids exceeding 3 trillion won (US$2.75 billion), but the figure may be unrealistic in light of the slowing domestic market. MBK Partners acquired 100 percent of ING at 1.8 trillion won in December 2013.

While the supposed asking price is considered too high by the market, a lowering of the price by MBK Partners is seen as unlikely.

Comments from MBK Partners’ officials that the sale could be called off should the bids fall short of the company’s expectations are also fueling speculations.

By Choi He-suk (cheesuk@heraldcorp.com)