Santander to cut 3,000 Abbey jobs

23rd August 2004, Comments 0 comments

23 August 2004, LONDON - Spanish bank Santander Central Hispano (SCH) announced Monday it would axe about 3,000 jobs at British bank Abbey National if its multi-billion-pound bid for the bank is approved.

23 August 2004

LONDON - Spanish bank Santander Central Hispano (SCH) announced Monday it would axe about 3,000 jobs at British bank Abbey National if its multi-billion-pound bid for the bank is approved.

SCH chairman Emilio Botin said in a statement that the job cuts, representing 11.5 percent of Abbey's 26,000-strong workforce, were necessary to achieve EUR 450 million (USD 550 million) cost savings targeted by the Spanish bank.

SCH has had a bid worth EUR 13.5 billion (GBP 8.9 13.5 billion, USD 16.4 billion ) for Abbey accepted by the British bank's board.

The European Commission was expected to conclude its preliminary investigation into the bid on competition grounds by 17 September.

A deal between Abbey and SCH would create the fourth-biggest bank in Europe by market capitalisation - behind HSBC, the Royal Bank of Scotland and UBS - and the eighth-biggest worldwide.

Meanwhile, British bank HBOS said Monday it would file a complaint to the European Commission regarding SCH's multi-billion-euro bid for Abbey National on  competition grounds.
 
HBOS, which was considering launching a counter-bid for British mortgage lender Abbey, is to launch a complaint about SCH's current ties with Royal Bank of Scotland (RBoS).

"It can't be acceptable that one of the largest of the big four banks in the UK could sit on the board of a company that owned one of the major challengers to the large (British) banks," an HBOS spokesman said.

[Copyright EFE with Expatica]

Subject: Spanish news

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