Sovereign Bancorp (SOV)

[RonnieD]

Banco Santander to buy 75.65% in Sovereign for $1.9 bln

By Sue Chang
Last update: 6:34 p.m. EDT Oct. 13, 2008
SAN FRANCISCO (MarketWatch) -- Banco Santander (STD:banco santander sa adr
SOV 3.68, -0.13, -3.4%) that it already does not own for about $1.9 billion in a stock-for-stock deal, the Spanish bank said late Monday. Santander currently owns 24.35% of Sovereign. Under the terms of the agreement, Sovereign shareholders will receive 0.2924 Banco Santander American Depository Share for every share of Sovereign common stock. "The transaction meets Santander's criteria for acquisitions, both strategically, by significantly enhancing the geographical diversification of the Group, and financially, with a projected net profit for Sovereign of $750 million in 2011," said Santander in a statement.