Banco Santander buys United States bank Sovereign

Banco Santander buys United States bank Sovereign
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By h.b. - Oct 14, 2008 - 6:25 AM

One of the Sovereign branches in the United States - Photo EFE

It comes as Santander announces losses for the last quarter of 718 million.

Banco Santander has reached a deal to purchase the 75% of the United States bank Sovereign which it does not yet own for 1.4 billion €. Santander had taken its shareholding in the bank upto 24% over the past three years, and now becomes the complete owner under a deal made up of the interchange of shares. The press has calculated that Sovereign is worth 1.85 billion €.

Meanwhile Santander has announced it is to spend 1.25 billion € on Abbey, its business in the U.K. It comes in support for the British Government’s rescue plan for the banking sector.

Santander has announced a 2% amplification of capital to pay for the new purchases as latest numbers show that the bank lost 718 million in the last quarter taking losses so far this year to 754 million.

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