According to the Monday issue of Spanish daily El Pais, Santander has decided not to bid for Bank BPH-200 assets, as the price tag was said to be too high. A spokesman of Santander declined to comment. According to press speculation, Santander has decided that the price of € 1.0bn - € 1.5bn for the branches was too high.
Our view: The rumoured price range equates to a 9m06 P/BV of 2.6x – 3.9x, which is broadly in line with our expectations. The news that Santander has pulled out, due to the price, may be seen as neutral, as other competitors have stayed and only one bank can win in the end.