Strategy
Santander Reduces SanPaolo Stake, Confirms Italian Ambitions
Santander, Spain's largest bank has sold a 4.8 per cent stake in SanPaolo-IMI for €1.6 billion ($2.1 billion), leaving it with a 3.6 per cent holding in Italy's third-largest lender, signalling a loosening of its ties with the Italian bank that it once hoped to take over. Santander’s stake, which it now says is "financial" rather than "strategic", will be further diluted to 1.7 per cent once SanPaolo completes its €74 billion merger with Intesa, Italy's second-largest bank. But Santander will maintain a joint venture with SanPaolo in funds distribution and remains receptive to further opportunities in the highly fragmented Italian financial services market. Banif, Santander's private banking arm paid KBL of Belgium €44 million in November for Fumagalli Soldan, a Milan-based boutique with around €400 million of client assets under management.