Banco Santander SA is in advanced talks to acquire full control of Sovereign Bancorp Inc., according to published reports.
Madrid-based Santander is expected to pay approximately $3.81 per share, which was the price that Sovereign's shares closed at in Friday trading on the New York Stock Exchange, according to The Wall Street Journal.
The transaction would value Wyomissing, Pa.-based Sovereign at approximately $2.53 billion.
Banco Santander has been considered a potential buyer of Sovereign ever since the Spanish bank took a 24.9% stake in Sovereign three years ago and three seats on its board.
Sovereign Bancorp is the parent company of Sovereign Bank, which has 750 branches and about 12,000 employees.
Last week, Sovereign named Paul A. Perrault its president and chief executive, effective in January, succeeding Joseph Campanelli, in a move to restore investor confidence.
Sovereign shares have fallen $7.50 per share, or 65%, since the beginning of the year.
Shares of Sovereign were up 9 cents, or 2.4%, to $3.90 per share in late-afternoon trading.
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