Exclusive: Santander to list unit in New York, Mexico Sept 25 - source

Fri Aug 24, 2012 3:11pm EDT
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By Lizbeth Salazar

MEXICO CITY (Reuters) - Banco Santander (SAN.MC: Quote) is looking to list its Mexican unit in Mexico and New York on September 25, a source close to the deal told Reuters late on Thursday.

The move is part of Santander's bid to shake off its association with its struggling home market, allowing it to remind investors of its international reach and paving the way for a listing of its British subsidiary next year.

The bank is considering listings in other parts of the world following its pattern of offerings for units in Brazil and Chile in recent years, the Mexico-based source said. The source added that he did not have details on the planned British listing.

The euro zone's biggest bank, which has suffered less than domestic rivals from the economic crisis in Spain because of extensive overseas interests, is looking to raise between $3 billion and $4 billion in the offering, Thomson Reuters IFR reported last week.

"It is very premature to talk about the pricing, the ranges are still very wide," the source said. "The date could change, but only if there was something serious in financial markets."

Book runners of the deal have started meetings with fund managers ahead of roadshows, which are expected to start shortly.

The Ve por Mas brokerage in Mexico City said it expects the Mexican portion of the listing to be priced at around 36.40 pesos a share, while other analysts forecast a range of between 30 to 37 pesos.

Santander plans to list about 25 percent of its Mexican unit, which is Mexico's third-largest bank by assets, with just over 6 percent being sold in Mexico and 18.7 percent abroad.   Continued...

A pedestrian walks past a branch of a Santander bank in London, January 11, 2010. REUTERS/Suzanne Plunkett