Monday November 10, 09:22 AM
STOCKS NEWS EUROPE-Santander rights issue hits bank, peers
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08:57GMT 10Nov2008-Santander (Madrid: SAN.MC - news) rights issue hits bank, peers
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Banco Santander (SANB3.SA - news) 's announcement of a deep-discounted rights issue to shore up its capital ratios sends its shares, and those of peers BBVA (Madrid: BBVA.MC - news) and Bankinter, lower on fears that other Spanish banks may make similar measures.
Banco Santander is down 3 percent and BBVA falls 0.4 percent and Bankinter is down 0.2 percent.
'The focus will now be on BBVA, and the other Spanish banks, which may now look to hit the benchmark now set by Santander in terms of capital levels,' a Madrid-based analyst says.
Santander says its rights issue is entirely dedicated to reinforcing its core capital level to 7 percent, from the 6.3 percent the bank announced at the end of September.
The bank (NASDAQ: TBHS - news) is offering investors 1.6 million new shares or one for every four they already hold, with the new shares priced at 4.5 euros per share, compared to Santander's closing of 8.34 euros per share on Friday.
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