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Article: Sovereign Gets an Investor, Buying a Bank.(Sovereign Bancorp Inc. to sell equity to Banco Santander Central Hispano SA)
- Article from:
- American Banker
- Article date:
- October 25, 2005
- Author:
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Facing mounting pressure from an activist shareholder, Sovereign Bancorp Inc. spent the weekend in late-stage talks that culminated Monday with a deal to sell a significant equity stake to Banco Santander Central Hispano SA.
Details of the proposed transaction were emerging just before press time. Banco Santander, of Madrid, would pay $2.4 billion for a 19.8% stake, with an option to buy 5% after July 2006 and 100% after two years. Sovereign, in turn, announced a deal to acquire Independence Community Bank Corp. in New York for $3.6 billion.
Executives at the $63 billion-asset Sovereign and at the $18 billion-asset Independence declined to discuss the negotiations. ...