Spain's Santander to buy Alliance and Leicester.
Global Banking News - 15 July 2008(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
Spain's Santander Bank (NYSE: STD) (SAN.MC) has agreed to buy 100 per cent of the British bank Alliance and Leicester (A&L) (LSE: AL) for EUR1.57bn (USD2.5bn).
The transaction will be carried out through a share swap, with the Spanish bank exchanging one of its shares for every three shares of Alliance and Leicester (LSE: AL), Santander told the Spanish market regulator CNMV. Santander will extend its capital by two percent for the operation.
Alliance and Leicester will be integrated into Santander's British subsidiary Abbey, which the Spanish bank acquired in 2004.
The operation, which Santander's president Emilio Botin described as a 'significant step' towards expanding the bank's activities in Britain, is expected to be completed in October subject to approval from shareholders.
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|Publication:||Global Banking News (GBN)|
|Date:||Jul 15, 2008|
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