Statement re Union Meeting
Banco Santander Central Hispano SA
31 August 2004
Banco Santander Central Hispano, S.A.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED
STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN
FOR IMMEDIATE RELEASE
Banco Santander Central Hispano, S.A. ('Banco Santander') Statement Regarding
Meeting with Union Representatives of Abbey National plc ('Abbey')
In response to requests for greater detail of the meeting between the Chairman
of Banco Santander, Emilio Botin, and representatives of Abbey's recognised
trade union, ANGU, on 23 August 2004, Banco Santander announces the following
summary of the meeting.
'The chairman of Grupo Santander, Emilio Botin, today met representatives of
Abbey National plc's recognised trade union ANGU on 23 August 2004 to discuss
Santander's recommended acquisition of Abbey, which was announced on 26 July
2004.
Representatives of ANGU had previously met with representatives of Santander's
Spanish unions in Barcelona on 13 August 2004.
'I was delighted to meet the representatives of ANGU, listen to the issues they
wished to raise, and tell them more about Grupo Santander and our exciting plans
for Abbey,' said Mr. Botin. 'We are very proud of our record in running
successful businesses for the benefit of shareholders, customers and employees
and we look forward to working with Abbey staff in the months and years to
come.'
Mr. Botin confirmed that:
• Santander has written to the Chairman of the Trustees of Abbey's pension
funds to provide reassurances that existing pension entitlements of Abbey
employees will be safeguarded.
• In order to implement Santander's plans for Abbey and achieve the stated
run-rate cost savings of Euro 450 million in the third year following
completion of the transaction, Santander envisages a reduction in the
overall number of jobs at Abbey in the order of 3,000.
• As a means of aligning the interests of Santander and Abbey employees,
Santander intends to award Abbey employees 100 Santander shares following
completion of the transaction, subject to obtaining the necessary
shareholder and legal and regulatory approvals. Santander is proposing to
establish an Inland Revenue approved share incentive plan in order that the
award of shares can be made in a tax efficient manner.
At the meeting Mr. Botin also outlined:
• The reasons behind the recommended acquisition and the expected timetable
for receipt of EU merger clearance next month.
• Santander's plans for revitalising the Abbey franchise and the absence
of any overlap between the two businesses.
• Santander's success in integrating previous acquisitions outside Spain
Formal documents relating to the recommended acquisition are expected to be sent
to Abbey shareholders next month.
Enquiries:
Banco Santander
Keith Grant (Head of International Media) + 34 91 289 5206
Peter Greiff (Deputy Head of International Media) + 34 91 289 5207
Maitland
Angus Maitland + 44 20 7379 5151
Martin Leeburn
Philip Gawith
Brunswick
Rurik Ingram + 44 20 7404 5959
Terms defined in the press announcement dated 26 July 2004 have the same meaning
as in this announcement.
Goldman Sachs International ('Goldman Sachs'), which is regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for Banco
Santander as joint financial adviser and no one else in connection with the
Acquisition and will not be responsible to anyone other than Banco Santander for
providing the protections afforded to customers of Goldman Sachs nor for
providing advice in relation to the Acquisition, or any matter referred to
herein.
J.P. Morgan plc ('JPMorgan'), which is regulated in the United Kingdom by the
Financial Services Authority, is acting exclusively for Banco Santander as joint
financial adviser and no one else in connection with the Acquisition and will
not be responsible to anyone other than Banco Santander for providing the
protections afforded to customers of JPMorgan nor for providing advice in
relation to the Acquisition, or any matter referred to herein.
Merrill Lynch International ('Merrill Lynch'), which is regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for Banco
Santander as joint financial adviser and no one else in connection with the
Acquisition and will not be responsible to anyone other than Banco Santander for
providing the protections afforded to clients of Merrill Lynch nor for providing
advice in relation to the Acquisition, or any matter referred to herein.
The members of the Comision Ejecutiva (executive committee of the board of
directors) of Banco Santander Central Hispano, S.A. and Sr. D. Juan Rodriguez
Inciarte and Sr. D. Francisco Gomez Roldan, each being a senior executive of
Banco Santander Central Hispano, S.A., (together the 'Relevant Santander
Persons') accept responsibility for the information contained in this
announcement, except that the only responsibility accepted by the Relevant
Santander Persons in respect of the information contained in this announcement
relating to Abbey, which has been compiled from published sources, is to ensure
that such information has been correctly and fairly reproduced and presented.
Subject as aforesaid, to the best of the knowledge and belief of the Relevant
Santander Persons (who have taken all reasonable care to ensure that such is the
case), the information contained in this announcement is in accordance with the
facts and does not omit anything likely to affect the import of such
information.'
This information is provided by RNS
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