Santander may change swap ratio in buyout of Brazil unit

BRASILIA, July 31 Thu Jul 31, 2014 7:08pm EDT

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BRASILIA, July 31 (Reuters) - Banco Santander SA said on Thursday it could change the swap ratio in a buyout of its Brazilian unit if there is a delay in the transaction.

The Madrid-based bank said in a filing that a delay of the voluntary swap could coincide with the payment of dividends and other remuneration to shareholders of both financial institutions.

On April 29, Santander launched a 4.7 billion euro ($6.5 billion) offer for the 25 percent of Santander Brasil SA it does not already own. Santander, which is emerging from Europe's worst economic crisis in decades, hopes the buyout will cut costs, boost returns and lure clients to Santander Brasil. At the time the transaction was expected to be completed by October.

Under the current terms the shareholders who accept the offer will receive 0.70 newly issued share of Santander for every unit of Santander Brasil. (Reporting by Alonso Soto; Editing by Steve Orlofsky)

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