More than 15% of shareholders in Alliance & Leicester (A&L), almost 18,000 voters, motioned against its £1.3bn acquisition by Spanish bank Banco Santander, the firm reveals today.
However, with the move receiving 84% backing, A&L says it is set to become a wholly owned subsidiary of Banco on 10 October.
The deal, which remains subject to High Court approval but has received EC backing, will see the trading of new shares in Banco Santander commence on 14 October, it adds.
Roy Brown, acting chairman of A&L, says: “We welcome our shareholders’ approval of the offer from Santander, which was unanimously recommended by the Board of Alliance & Leicester.
“The economic outlook and continuing uncertainty in financial markets have reinforced the Board's view that this transaction is in the best interests of shareholders, customers and other stakeholders.”
Under the terms of the acquisition, A&L’s ordinary shareholders will receive one new Banco Santander share for every three A&L shares, which it values at 335p each including an interim dividend of 18p. A similar arrangement followed Santander’s acquisition of Abbey in 2004.
On 14 July, Banco Santander agreed to buy A&L for £1.3bn and inject £1bn in capital.
Alliance & Leicester recently announced a half-year net loss of £23.9m, after reporting a net profit of £183.6m a year ago. Santander revealed H1 profits of 4.73bn EUROs.
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