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Banco Santander's (STD) Brazilian unit President Marcial Portela denies reports the bank is...

Banco Santander's (STD) Brazilian unit President Marcial Portela denies reports the bank is planning to sell an equity stake to one of its competitors. "(Santander) does not need capital," says Portela. Brazilian banks mentioned as buyers are also denying reports of talks. (earlier)
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  • Memo
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    SAO PAULO, May 30 (Reuters) - Banco Santander Brasil
    <SANB11.SA>, Brazil's largest foreign lender, is not for sale,
    Chief Executive Officer Marcial Portela Álvarez told Valor
    Econômico newspaper, seeking to put a end to weeks of
    speculation on the matter.
    Spain's Banco Santander <SAN.MC>, which controls about 76
    percent of its Brazilian subsidiary through a series of holding
    companies, has no intentions to exit Brazil or sell either a
    strategic or a minority stake to a rival, Portela told Valor in
    an interview published on Wednesday.
    "There is not any negotiation in course to sell the bank,
    and the controlling shareholder has no intentions to sell
    either," he added. Santander Brasil is also Brazil's
    third-largest private sector lender.
    Calls made to Santander Brasil's press office in São Paulo
    were not immediately answered.
    In recent weeks, local media reported, citing unnamed
    sources, that Santander Brasil was in talks with potential
    bidders for a strategic stake, a move that would have allowed
    its parent company to raise capital to cover losses in Spain --
    the group's home market.
    "Our goal is to grow locally, not to sell," Portela added.
    Santander Brasil accounts for about 27 percent of the Spanish
    bank's annual profit.
    Agência Estado and other news outlets mentioned
    state-controlled Banco do Brasil <BBAS3.SA>, the nation's
    largest bank, and Banco Bradesco <BBDC4.SA>, Brazil's
    second-biggest nongovernment bank, as likely bidders for
    Santander Brasil.
    Both Banco do Brasil and Bradesco have denied
    "categorically" being engaged in any type of negotiations to buy
    all or part of Santander Brasil.
    However, Portela told Valor that a sale of a 2 percent to 3
    percent stake in Santander Brasil could take place at some
    point, in order to meet rules that stipulate a minimum threshold
    of 25 percent stock float for companies listed in the São Paulo
    Stock Exchange's Novo Mercado section.
    Such a stake sale, which Valor estimated at about $600
    million, is more likely to take place through a private
    placement, Portela told Valor.
    Currently Santander Brasil's stock float is about 23
    percent. A small placement equivalent to a 0.6 percent stake
    should take place before October, to meet bourse rules.
    30 May 2012, 11:29 AM Reply Like
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