Santander looks for a quick deal

BANCO Santander, the Spanish bank that has offered to buy Abbey for £8.4bn, hopes to complete the deal by November, provided it receives regulatory clearance without delay.

But the proposed closing date will lapse if, as expected, HBoS launches a counter-offer for Abbey, which would almost certainly be referred to the Competition Commission. The inquiry could take at least nine months but may be prolonged if other banks, such as Lloyds TSB, enter the battle.

Juan Inciarte, director in charge of Europe at Santander, said the Spanish bank expected competition clearance for its proposed takeover of Abbey on September 17.

He added: 'We had previously indicated we were aiming for completion by the end of the year. We believe this reinforces the strengths of our offer - value, certainty and immediacy.'

Meanwhile, according to the Sunday Telegraph, Santander has offered to give up its seats on the board of Royal Bank of Scotland in a bid to get the takeover cleared by the European competition authorities.

Abbey shareholders would receive a special dividend of 31p on completion of the deal by Santander. It had previously been thought that this would be subject to a 15% tax by the Spanish government. However, the special dividend would be paid from Abbey's resources and escape the withholding tax.

Santander chairman Emilio Botin said this week that 2,500 jobs will be lost following an acquisition. But his deal has received the support of the banking unions, who fear a HBoS takeover would lead to a bloodbath.

HBoS has admitted that it has been granted access to Abbey's books as it prepares to launch a counterbid. However, it is understood that Lloyds TSB has not yet requested access.