Australia and New Zealand Banking Group (ASX:ANZ) said it is reviewing the finances of Korea Exchange Bank, the lender put up for sale by Lone Star funds.

For several months now, US private equity firm Lone Star has been seeking to offload its 51 per cent stake, valued at 4.13 trillion Korean won ($3.9 billion), in KEB. Industry sources predict the final price could reach $5bn.

ANZ said its participation in the KEB sale was part of the its ambitious Asian expansion strategy.

The deal is reasonable, according to Goldman Sachs analyst Ben Koo.

"Strategically, KEB's core business strengths of trade finance and foreign exchange appears to be a good fit for ANZ's business in the region.

"However, Korea has traditionally been a lower (return on equity), growth market than other regions in Asia," he said.

He approximated the price of the stake to be $4.5bn to $5.2bn which compared to ANZ's excess capita of $6bn-$7bn. The Australian major had been contending against Asian private equity fund MBK Partners but the latter was reported to have recently withdrawn its bid.

Goldman Sachs and JPMorgan are said to be acting for ANZ. Credit Suisse, meanwhile, has been advising Lone Star on the sale of its KEB stake.

ANZ shares finished 2c lower to $22.16. The announcement on KEB came after the bourse closed.