he performance of Santander’s Mexican bank contrasts with Spain. Photographer: Susana Gonzalez/Bloomberg
Potential investors must consider the future capital needs of Santander as it absorbs mounting real estate losses in Spain and meets tougher regulatory requirements, said Bill Rudman, who helps manage about $250 million of emerging market shares at Blackfriars Asset Management in London. One risk is that Santander will sell more shares in Mexico as it did in Chile last November.
“Santander’s problems in Spain are absolutely an issue for holders of stock in its units overseas,” said Rudman, who already holds shares in the bank’s Brazilian (SANB11) unit. “The question of when they might sell the next 10 percent is always going to be on people’s minds.”

Even so, Rudman said investors may welcome the sale because of a scarcity of listed banks in Mexico since Spain’s Banco Bilbao Vizcaya Argentaria SA (BBVA) bought out shareholders of Grupo Financiero Bancomer SA in 2004 and New York-based Citigroup Inc. (C) acquired Grupo Financiero Banamex Accival SA in 2001.
“From my point of view, Mexico certainly needs more bank listings,” said Rudman, who owns shares in Grupo Financiero Banorte SAB, the No. 3 Mexican bank by outstanding loans.
Santander Chairman Emilio Botin will discuss the sale plans at a news conference at 9.30 a.m. in Mexico City.
“I am sure this transaction will mark a new stage in the history of our bank in Mexico and will strengthen our plans for growth and development in the country,” Botin, 77, said in a statement today.
Santander already has units in countries including Brazil, Chile and Poland that trade on the stock market, as well as its Banco Espanol de Credito SA consumer bank in Spain. The bank plans to have all its major subsidiaries traded within five years, Botin said today.
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