Santander eyes UK listing as Barclays weak on Spain and Portugal

El Pais, a Spanish newspaper reported that the Spanish bank is looking at the listing as a way of restructuring its debts whilst expanding in the UK, possibly by acquiring another bank.

A spokesman for the bank denied such remarks although noted remarks made by Chairman Emilio Botin saying the bank would examine any 'buy' opportunities.

The sources from El Pais also claimed that reports of Sovereign Bancorp, Abbey's US business, being listed "isn't being considered".

The news comes at a bad time for Barclays, who are weak on investments in Spain and Portugal.

Following further worries on eurozone debt last Friday, many analysts made mention of the 800 branches held by Barclays in the Iberian countries, sending the share price falling by over 8 pct - the share price recovered a little today.

Barclays Capital asset allocation guru, Tim Bond meanwhile recommends a 'bearish' stance on equities adding that their is real danger that Portugal and Spain could default on debt repayments.

"To be sure, such an approach might be overly cautious and premature. There is an obvious risk of missing out on further gains from the liquidity-fuelled portion of the bull run" said Tim Bond.

"Some investors will undoubtedlyu wish to continue dancing on the edge of the volcano and we undoubtedly wish them luck.

"Our inclination is rather more cowardly" he said.