Santander seeking Stock Market windfall - 23.07.2010

SANTANDER, is hoping to list its extensive British operation on the London Stock Exchange in a bid to raise £3 billion.

The largest bank in Spain wants to float 20% of Santander UK, a subsidiary formed by bringing together its British acquisitions Abbey, Alliance and Leicester, plus parts of Bradford and Bingley.
The transaction, which could take place in the next few months, should bring in the equivalent of 3.5bn euros
 
 And, according to a Financial Times report this week, it will go ahead if market conditions are favourable. But if the economy and stock market does not show signs of a stable recovery, Santander is unlikely to make the move.
 
Santander needs the extra money to fund a recent spending spree, as well as for future expansion plans.
 
Last week, Swedish bank SEB signed an agreement to sell its German retail banking business to Santander for 555m euros, which includes 173 branches embracing about one million customers.
The Spanish bank has also made an offer to buy some 300 RBS branches in Britain, reportedly for £1.8bn.
 
This would add to the 1,300 branches it already has in Britain following the company’s earlier takeovers there.