By Jesús Aguado and Sarah White MADRID (Reuters) – Banco Santander announced a capital increase to 7,500 million euros (8,800 million), which is accompanied by a cut in pay dividends, to strengthen the solvency and support the growth of Spanish lender. Santander, the largest bank in the euro zone, will make an accelerated placement of securities, equivalent to 9.9 percent of its current capital, said Thursday afternoon that there is enough demand to cover the extension . While Santander comfortably passed the examinations to banking in Europe last October, the market believes that capital is something right compared to the big European banks and applying new regulations more stringent Basel. “I think it’s just what they had to do. They needed to strengthen its capital base,” said François Savary, chief investment strategist at Swiss bank Reyl having Santander shares in the portfolio. Santander has dealt well with a deep economic crisis in Spain, thanks to revenue from external key markets such as Brazil and the UK. The bank had previously resisted calls from shareholders to raise its capital. Santander said Thursday that the money they get so used to grow in key markets including Spain, Brazil, United Kingdom and United States. A source said Thursday that enlargement would take place at a price of between 6.18 and 6.5 euros per share, which would mean a discount of between 5 and 10 percent over the price of 6,856 euros to which traded the bank before its shares were suspended. Continued …
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