Santander Chile Slumps on Spain Funding Concern: Santiago Mover

Banco Santander Chile (BSAN), a unit of Spain’s largest lender, completed its steepest three-day loss in four months amid concern that Europe’s deepening debt crisis will require Spanish banks to seek further capital injections.

Santander Chile fell 1.3 percent to 35.40 pesos as Chile’s benchmark stock index was little changed. The stock has lost 4.2 percent this week.

“Any negative sentiment from Spain will always weigh on Santander Chile,” said Christopher Disalvatore, an analyst at IM Trust SA in Santiago. “People may be selling on concern the controller chooses to sell more shares by December once a lock- up period announced for a previous sale comes to an end.”

Spain called for outside support for the first time to battle the financial crisis as Budget Minister Cristobal Montoro said European institutions should help shore up the nation’s lenders. Shares in Spanish controller Banco Santander SA (SAN) reached on May 30 the lowest closing level in more than three years.

Santander sold 7.8 percent of the Chilean unit for $960 million in December when it also agreed to divest its Colombia unit to shore up finances. At the time the Madrid-based lender agreed not to sell more shares in the Chilean unit for a year.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.