M&T Bank Said to Consider Giving Up Majority Stake to Santander

M&T Bank Corp. may give up a majority stake to Banco Santander SA through a merger with the Spanish lender’s U.S. unit, while retaining some elements of control, according to people with knowledge of the matter.

The banks are in informal talks with the U.S. Federal Reserve to gauge how such a deal would be received, and expect to hear back within two weeks, said the people, who spoke on condition of anonymity because the talks are private. Many of the terms, including the timing of when Santander would get the majority stake, have yet to be worked out, the people said.