Santander, Europe’s biggest bank, is reported to be considering floating on the London stock exchange – a move that would probably be accompanied by a branch-buying spree.
The Spanish group, which has subsumed Abbey, Alliance & Leicester and Bradford & Bingley, is expected to be a long way off taking such a decision.
Other options include seeking finance from the debt markets, through a big loan subscribed by several banks, or through a share exchange with other investors, it is understood. But the process to sell the business-focused RBS branch network – a move forced by the European Union after the government bailout of the taxpayer-owned bank – is still in its “very early days,” a source has stated publicly.
Spain’s El Pais newspaper said the possibility of listing the bank’s US arm Sovereign Bancorp “isn’t even being considered”.
Santander has refused to comment on the reports but Chairman Emilio Botin said last week the bank aimed to grow in Britain and would examine any buy-up opportunities.
Reports at the weekend claimed the bank was weighing up a possible £15bn flotation of its UK banking interests.
The Sunday Times said Santander was looking at selling a minority 25% stake in the UK business.
This would give it the funds to bolster its UK position by buying up the 300 branches due to be sold by Royal Bank of Scotland to ease European competition authorities.
The capital raised by the float could also help Santander shrug off the losses likely from its exposure to the ailing Spanish economy.
Written by Andrew Dearman (Exclusive European Correspondent)
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