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Breakingviews: Santander puts Brazil unit out of its misery

Tuesday, Apr 29, 2014 - 03:06

April 29 - The Spanish bank is buying back the minorities of Santander Brazil at a discount to the 2009 IPO price. Breakingviews says the move makes financial sense, but ignores its policy of listing major units

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A vote of confidence in Brazil from sometime that and despite rising regulatory -- some good news after Deutsche Bank kept Nassau. Is his talk about both these banking stores I'm Brazil is -- a clearly a big cash -- 5% and this this this this latest move for the Brazilians. Makes perfect sense. Well it makes financial sense for them because they're buying the minority. Below the price of the IPO in the 2009 -- of the Brazilian unit. So it makes begins sense for the bank on the other hand fewer and on the -- -- a -- writing the story. Points how about -- through some doubt on the stated strategy of some time there. Which used to lift its local units in different countries and by the way the UK. Unit who were supposed to be has long been rumored to supposed to be lifted until. No one knows exactly what's what's the deal there because she's she's super it was supposed to be a strategy. Of of enlisting major market listing of mixing of the country divisions. And out there doing that -- of the second thing is that. If you were ready to invest in and sometimes their brands. A broad -- the UK and you realize that they're pretty good at selling stuff. But. Alou or or -- a pretty good buying stuff from you under the present the IPO may be enough trust the bank. That as a minority. Chip on the view view might be good to be twittering about it topic. The second thing is that in any case. As profitable as it is Brazilian unit needs some fixing because it has been -- -- on the -- in Brazil. By comparison problems due partly to slowing growth and -- so it's not -- access talent so. Consider some interesting stats that is to finish the center and -- suicide dynamics 40% of its profit and loss in America. Brazil provides a sense of messing -- which is on par with the UK unit and that's quite I mean I think. I'm all right Deutsche. Dominique Kelley has written this piece you wrote a piece a week ago -- Raising more equity they should raise. More he's been -- up to seven billion. Com and today's news which is generally. Better than expected. And he says is gonna make risen at -- equities. Well it could've been worse for us. -- there is no bond trading has been paid ten investment banking division as on the banks as well but -- people expected -- to to be much worse than it has been. So ironically could make the equity story may be better and throws in a nutshell this is the reason why don't you might tiny piece here. To risk everything from now talking about it can't we leave that -- counsel from roses breaking news. I'm if you are what are US show comes on the twelfth C east and seventeen -- be honest here every day. -- -- -- -- --

Breakingviews: Santander puts Brazil unit out of its misery

Tuesday, Apr 29, 2014 - 03:06

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