Australia and New Zealand Banking Group Ltd (ASX: ANZ) said Tuesday it is continuing to conduct due diligence on a majority stake in Korea Exchange Bank, dismissing media reports that the Melbourne-based lender had lost out to another bidder.

The major Australian bank said it "is continuing to participate in a due diligence process in relation to the potential sale of a 57.27 per cent shareholding in Korea Exchange Bank (KEB)."

"Korea is an important market in the global economy with strong trade ties across Asia and ANZ believes that exploring strategic and organic growth opportunities in Korea is a logical fit with its super regional strategy.

"ANZ has previously advised that it would only proceed with a transaction if it satisfies its disciplined criteria including an anticipation of shareholder value accretion."

ANZ, however, declined to comment on speculation in today's Wall Street Journal regarding KEB.

The Wall Street Journal reported Lone Star Funds had agreed to sell its 51 per cent stake in KEB to South Korea's Hana Financial Group in a surprise deal that would need regulatory approval. Hana is South Korea's fourth biggest bank while KEB is the fifth biggest.

ANZ shares fell back after having risen as much as two per cent. By 1245 AEDT, the bank is up eight cents, or 0.3 per cent, at $23.16.