65988
Santander Rescues Banco Popular
World Economy

Santander Rescues Banco Popular

Banco Santander SA agreed to buy Banco Popular Espanol SA for a nominal €1 ($1.13) after European regulators determined that the troubled lender was likely to fail and ordered it to be sold, Bloomberg reported. Santander will raise about €7 billion through a rights offer to bolster Popular’s balance sheet, it said in a regulatory filing on Wednesday. The lender will acquire all of Popular’s stock plus shares resulting from the conversion of its co-cos and Tier 2 instruments for the €1 price, imposing losses on the stricken bank’s shareholders. Popular’s €37 billion of non-performing assets, the legacy of reckless real estate-linked lending ahead of Spain’s property crash, drained profit and capital, forcing new Chairman Emilio Saracho to say in April that the bank would need to sell new shares or find a buyer. The situation had deteriorated in recent days, with the bank losing about half its market value. The transaction will generate a return on investment of 13% to 14% in 2020 and add to earnings per share by 2019, Santander said.

 

Short URL : https://goo.gl/0V6BH1
  1. https://goo.gl/NX7Mun
  • https://goo.gl/GrlraR
  • https://goo.gl/56f1cv
  • https://goo.gl/9tivVR
  • https://goo.gl/wnKsh1

You can also read ...

Venezuela Devalues Currency by 95 Percent
Venezuela devalued its currency by about 95% ahead of the Aug...
The average annual salary for K–12 public-school teachers is roughly $58,000, and they typically spend a sizable chunk  of that on classroom supplies integral to their jobs
Airbnb, the popular platform that lets people rent out their...
S&P, Moody’s Lower Turkey Ratings
Two major global ratings agencies lowered Turkey’s ratings Aug...
Nigeria CB Reports $91b FX Inflow in 2017
The Central Bank of Nigeria, said the aggregate foreign...
Russia’s largest electronics chain, M. Video, estimates that about a fifth of its products are bought with credit  or on installment plans as people are more confident about the future.
Russian consumers are borrowing like the boom times are back...
Argentina Says Poverty to Rise as Economy Slumps
More Argentines are likely living in poverty now compared with...
Egypt Keeps Rates Steady
Egypt’s central bank left its main interest rates unchanged,...
China Internet Stocks Fumble
A steep downturn in heavyweight Chinese internet stocks and...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus