UPDATE: Brazilian Bank Bradesco Denies Santander Purchase Report
May 27 2012 - 8:02PM
Dow Jones News
Brazilian bank Banco Bradesco SA (BBDC4.BR, BBD) "emphatically
denies" a newspaper report that it is planning to purchase an
equity stake in the Brazilian unit of Spain's Banco Santander SA
(STD, SAN.MC), a spokesman for the bank said on Sunday.
"Bradesco emphatically denies a report published by the O Globo
newspaper today, which draws conclusions with regards to
negotiations with Banco Santander," the spokesman said.
A spokeswoman for Santander Brasil, a unit of Spain's Banco
Santander, said the Brazilian bank isn't for sale.
Earlier Sunday, the O Globo newspaper reported that Bradesco has
been negotiating with Santander for just under eight months, and
that the talks have accelerated in the last two months. The
newspaper didn't say where it got its information.
O Globo reiterated recent speculation that the Spanish parent
company might consider selling between 30% and 40% of the Brazilian
unit, Banco Santander (Brasil) SA (SANB4.BR, BSBR). The banks have
considered an exchange of shares, "which would ensure that
Santander has the necessary liquidity to capitalize the operation
of the headquarters," according to O Globo.
There's been plenty of speculation in Brazil's press in recent
weeks about a possible sale by Santander to Bradesco or the
government-run bank, Banco do Brasil SA (BBAS3.BR, BDORY). The
reports cite ongoing financial turmoil in Europe, and specifically
in Spain, as the motive for Santander to sell.
On Wednesday, Banco do Brasil said it "vehemently denies"
information published in the O Estado regarding a possible purchase
of an equity stake in Santander.
Globo said that estimates made by some executives put the value
of Santander Brasil at between 100 billion Brazilian reais ($50
billion) and BRL160 billion. That would suggest the value of a
stake at up to BRL64 billion, the newspaper said.
-By Matthew Cowley and Rogerio Jelmayer, Dow Jones Newswires;
+55 11 3544 7082; brazil@dowjones.com
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