LONDON/MADRID - Spanish bank Santander is considering the sale of a minority stake in its UK arm through a stock market flotation to potentially repeat a windfall from a Brazilian spinoff last year, industry sources said Monday.
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Analysts and industry observers have been speculating about a potential public share offering for Santander's fast-growing UK arm since the euro zone's largest bank struck gold with the market debut of its Brazilian subsidiary in October last year.
The sources said several investment banks pitched the London IPO idea to Santander executives as part of broader fundraising strategies and the idea was being considered by the bank.
Proposals remain sketchy and no date or details have been set, however, and could depend on planned regulatory changes.
Santander declined to comment.
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Santander's UK arm, which makes up around 16 percent of the Spanish group's profits, is one of the market's most lucrative lenders, built up through the acquisition of high street names Abbey, Alliance & Leicester and Bradford & Bingley.
Chairman Emilio Botin has said the bank aims to grow organically in Britain, though it would look at acquisition opportunities. It is looking at more than 300 branches being sold by Royal Bank of Scotland, which would boost Santander's presence in UK commercial banking, one source said.
Asked about an IPO of the UK business last week Botin said "nothing is foreseen at present."
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