Spain's Banesto shares resume trading sharply higher

A man sleeps outside a Banesto bank branch in central Barcelona June 27, 2012.

MADRID (Reuters) - Spain's Banesto BTO.MC resumed trading up 23 percent at 3.6 euros ($4.72) per share on Monday after parent company Santander (SAN.MC) said it would absorb the smaller lender.

Trading in both Banesto and Santander was suspended before the market opened on Monday after Santander said it would merge with Banesto, in which it already owns almost 90 percent

Santander said it valued Banesto shares at 3.73 euros per share, 24.9 percent more than the closing price on Friday.

Santander was trading down 1 percent at 5.84 euros per share.

($1 = 0.7628 euros)

(Reporting By Paul Day; Editing by Jesus Aguado)