A private equity fund in conflict with Hanjin Group Chairman Cho Won-tae over management rights has expressed negative views on reports that Hanjin KAL, the holding company of Hanjin Group, is considering the acquisition of Asiana Airlines.

The Korea Corporate Governance Improvement Fund or KCGI, a major shareholder of Hanjin KAL, issued a statement Friday saying the takeover could lead to losses for shareholders and creditors. 

It then questioned whether it was a measure to preserve the current management while ignoring shareholders’ rights.

KCGI said that acquiring the debt-ridden Asiana Airlines without much thought could cause issues in employment and aviation safety, and called for a sufficient review and transparent consultations.

KCGI said it is requesting sincere dialogue with the company's management, creditors and the government, and that it's open to all options to protect creditors and shareholders’ rights through restructuring the aviation sector.  

An industry source said earlier that Hanjin Group, which owns Korean Air, is in talks with state-run Korea Development Bank, the main creditor of Asiana Airlines, to buy the country's second-largest flag carrier. The bank, however, said that the deal is just one of many options under consideration.