Deals
Santander Said to Weigh Stock Sale on Possible Popular Bid
- Spanish bank could use sale to bolster its capital levels
- Share sale to happen only if Santander bids for Banco Popular
A customer waits for a bus at a bus stop outside a Banco Santander branch in Madrid.
Photographer: Angel Navarrete/BloombergThis article is for subscribers only.
Banco Santander SA is considering a capital increase of more than 5 billion euros ($5.8 billion) as part of a potential offer for its smaller rival, Banco Popular Espanol SA, according to people familiar with the matter.
Santander is speaking to advisers about potential underwriting commitments for a stock sale if it decides to go ahead with an offer for the troubled Spanish lender, the people said, asking not to be identified as the talks aren’t public. The bank would use the sale to bolster its capital levels, which might be eroded by absorbing Popular, and could also raise a larger amount, they said.