Santander collects 7000 500 million euros from a sale of shares as the new CEO, Ana Botin, breaks radically with the strategy of his late father and cut dividends Spanish bank by two thirds.
However, the group’s shares fell 14.09%, which dragged the Spanish Stock Exchange (FTSE 35), which lost nearly 3.91% in trading yesterday.
The actions show that Booty stamped his authority on the rule of taking over four months after his father died Emilio, who led the bank for more than a quarter century.
The largest bank in the eurozone, previously resisted pressure from investors to raise capital, said it would use the funds to finance organic growth. But the decision raised speculation about possible acquisitions and caused a considerable increase in the value of shares in Monte dei Paschi di Siena, Italy-not a troubled bank.
Analysts said Botín put the interests of the investors over those of his family, whose share of 2% may be diluted with the issue of shares
“The capital addresses two major concerns about the bank and its actions: 1) perception -. and the reality that Santander is within the largest banks in Europe, which has the weakest capitalization in terms of maximum quality of Basel III fully loaded (Basel III is a reform for bank) regulation, and 2) that his payout ratio is excessive, “Citigroup analysts said.
Santander, which analysts say has the weakest among its counterparts balance, faces pressure to increase this capital since Deutsche Bank raised 8 billion euros last year, according to bankers.
The bank’s shares of Spanish origin were suspended yesterday as the board meeting discussed the plan and increased 3 percent before the announcement of the sale of shares, which reported first Financial Times .
Santander expects 2014 net profits rise 30 per cent to 5000 800 million euros . It also announced it would cut its annual dividend from 0.60 to 0.20 euros
about a thousand 258 million shares will be issued at a value of between 6.18 and 6.50 euros, a discount of 5 to 10 percent.
Unlike most banks, Santander refuses to disclose its common equity ratio premier under the rules of Basel III fully loaded (high quality). But analysts estimate was 8.5 percent in late December, the lowest in a group of over 30 among the largest banks in Europe.
After the fundraiser is expected to bank’s capital ratio increases to about 10%, below the industry average is 11%.
However, advirtie-ron analysts that if Santander, which is in talks to buy Novo Banco de Portugal, makes a big purchase, you probably need to raise even more.
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