Santander raises [euro]600m from Banesto sale.

Financial News, November, 2002

Byline: Yasmine Chinwala

Banco Santander Central Hispano, the Spanish bank, has sold an 11.6% stake in its subsidiary Banesto, raising [euro]600m ($595m), mainly from retail investors, as part of the bank's plan to rebuild its capital reserves.The deal had an unusual structure allowing both Santander and Banesto to raise money. Banesto, which is 99%-owned by Santander, launched a rights issue at [euro]7.5 per share, in which Santander sold its rights in the market.

CSFB devised a similar structure to finance the acquisition of Go, the UK low cost airline, by easyJet earlier this year. EasyJet received the proceeds of a rights issue and at the same time Stelios Haji-Ioannou, the chairman, and other owners of the airline monetised their rights issue...

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