The phoney war

23 Aug 2004

Both sides are engaged in PR offensives designed to damage the other s attempt to buy Abbey National. It s entertaining stuff. But neither side is packing a knockout punch.

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The UK press has recently run a number of articles concerning corporate governance practices at Banco Santander, the Spanish bank that is seeking to buy Abbey National in an £8bn deal.

These include the control exercised by the Botin family over the Spanish bank, in spite of their owning only a small percentage of the stock. Articles have also drawn attention to the large payoffs given to former executives of Banco Central Hispano, which merged on a nilpremium basis with Santander in early 1999. And Santander's ownership of a corporate jet and construction of an expensive new headquarters building.

Santander is offering one of its own shares plus 31p for each share in Abbey National.

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