Large Sovereign Bancorp (SOV) Holder Relational Investors Said There's No Deal with Banco Santander on Sale

In an amended 13D filing on Sovereign Bancorp Inc. (NYSE: SOV) after the close, 6.7% holder Relational Investors disclosed a letter sent to Citigroup Michael Diana refuting speculation of a deal between Relational Investors and Banco Santander (NYSE: STD) on a sale of the company.

The firm said, "In your November 29 report on Sovereign Bancorp, you wrote, among other things, that “we believe that an informal agreement has been reached [between Relational Investors and Banco Santander] for an intermediate term sale.” We wish to state for the record that Relational Investors has no agreement, informal or otherwise, with Banco Santander with respect to the potential sale of Sovereign Bancorp. Nor, contrary to the assertion on page three of your report, have we established with Santander "an informal, mutually agreeable framework" for the sale of Sovereign."