Banco Santander of Spain is in advanced talks to acquire Sovereign Bancorp for about $2.5 billion, people briefed on the matter said, as another frantic weekend of talks heralded the next wave of banking consolidation. Santander, which would gain a larger American presence with the deal, will probably pay around $3.81 a share, or where Sovereign's shares closed Friday. Sovereign, a savings and loan, has been hobbled by bad mortgages during the housing slump. As banks brace to report a new wave of losses in the third quarter, they are finding it very hard to raise money from private investors. Even stronger institutions, like Bank of America, have struggled to raise new funds. Treasury Department officials are weighing plans to make direct investments in banks to help them weather the current storm. But weaker ones have already begun reaching out to potential acquirers. The National City Corporation, for example, put itself up for sale last week, people briefed on the situation said.
Banco Santander of Spain is in advanced talks to acquire Sovereign Bancorp for about $2.5 billion, people briefed on the matter said, as another frantic weekend of talks heralded the next wave of banking consolidation.
Santander, which would gain a larger American presence with the deal, will probably pay around $3.81 a share, or where Sovereign's shares closed Friday. Sovereign, a savings and loan, has been hobbled by bad mortgages during the housing slump.
As banks brace to report a new wave of losses in the third quarter, they are finding it very hard to raise money from private investors. Even stronger institutions, like Bank of America, have struggled to raise new funds.
Treasury Department officials are weighing plans to make direct investments in banks to help them weather the current storm. But weaker ones have already begun reaching out to potential acquirers. The National City Corporation, for example, put itself up for sale last week, people briefed on the situation said.
