Banco Santander eyes Equitable PCI Bank stake

Banco Santander Central Hispano of Spain and three other groups are eyeing a stake in controversial Equitable PCI Bank.

Banking sources said Banco Santander has submitted a formal proposal to acquire a stake in Equitable PCI Bank, while the other interested parties are US-based venture capital firm Newbridge Capital which has a subsidiary in Singapore, the Ayala-controlled Bank of the Philippine Islands and its partner Development Bank of Singapore and Metropolitan Bank and Trust Co.

Finance Secretary Jose T. Pardo, who earlier revealed that an Asian and a US group were interested in Equitable PCI Bank, said the prospective buyer could either be working for a "straight purchase" of a block of the bank or a "share swap."

Pardo said he was informed that Equitable PCI Bank would have a board meeting today to discuss the four proposals.

The prospective buyer is eyeing the Go family‘s 30-percent stake in the bank as well as those owned by state pension funds Government Service Insurance System (12 percent) and Social Security System (25 percent).

The family of George Go reportedly wants to unload their shares after being tagged as the depository bank for President Estrada’s alleged kickback from jueteng operators.

The Development Bank of Singapore is coursing its offer through its local partner, BPI. Metrobank’s foreign partner, Tokai Bank is reportedly doing the same. Another local bank, Rizal Commercial Banking Corp. has not yet submitted a formal proposal but said it was also interested in Equitable PCI Bank.

Banco Santander, one of 10 foreign banks that gained entry into the local banking industry by virtue of the liberalization law of the 1990s, presently owns 60 percent of Banco Santander Philippines.

The BSP sees the sale of Equitable PCI Bank as good for the banking which is being encouraged to consolidate or merge to beef up their resources to make them less vulnerable to financial shocks.

Pardo said the government is willing to give up its stake in Equitable PCI Bank for the right price, but added that it will not sell at less than 90 percent share.

"If the price is right, we are willing to talk, otherwise there is no great hurry for government to unload, especially when the market is down," Pardo said.

Equitable PCI Bank is eyeing 20 percent to 35 percent in foreign investments as part of its program to beef up the bank’s resources.

The Go family owns 30 percent of the bank, SSS, has 25 percent, GSIS has 12 percent, while the Romualdez family has seven percent.