Management Strategies

09:14 AM
Connect Directly
RSS
E-Mail
50%
50%

Santander Eyes Remainder of Sovereign Stake

Spain's Santander (Madrid) is looking to purchase the remaining stake in Sovereign Bank (Wyomissing, Pa.) that it does not already own.

According to a report from Reuters, the banking giant was expected to pay $3.81 a share for the stake in the U.S. bank it did not currently hold, Sovereign's closing price on Friday, or a total of around $1.9 billion. Santander paid $3.3 billion for a 24.9 percent stake in Sovereign back in 2006, making it the bank's largest shareholder.

Sovereign was hit by bad debts like many of its U.S. counterparts. Analysts see Santander as seizing the opportunity to acquire the rest of the bank for a bargain price, furthering its growth aspirations in the Americas.

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology - August 2014
Modern core systems are emerging as the foundations of effective channel integration and customer engagement initiatives.
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
New IT Models for New Financial Services Challenges