HSBC Holdings PLC has an option to expand on Asian market within the purchase of Newbridge 49% stake in Korea First Bank.

"Newbridge has been talking to HSBC to sell its stake," but "the two sides aren’t likely to have made a big progress in negotiations," said one official.

The talks are now in their early stages and may fall apart, officials say.

Newbridge bought 51% stake of the South Korea eight-largest lender in 1999 and now is holding around 49% of the bank.