According yahoo, market capitalization of STD is
Giving the fact that at closing of NYSE the value of
each share of STD was 49,75 US $ and the number of
shares 573,7 millions, market capitalization of STD was
28.541B. Conversely if we take the value of each share in
Madrid: 7630 pesetas and convert it into US $ it results
a price of 50,35 US$ that multiplied by 573,7M
produces 28.891B. take what you prefer the diference is
19.97% or 21.11%.
Where is the mistake?
livndien3qtrtime, I belive that, by the moment,
you are right canceling the limit of $ 50. But don�t
hurry so..., by the next summer, after the stock
splits, it is quite reasonable to expect
a quote of
$30 per splited share.
Stkjunky, officialy (STD chairman letter to shareholders) the beliving in the possibility of doubling the beneffit in 3 years is based in the capacity of cost-cutting, and efficiency increase taking into acount the sinergies to be produced by introduction of new products and the complementarity of BANESTO�s network.
OK, that�s interesting, but more interesting are the following data:1)the control over BANESTO is now 97.7% so that STD is
free to do everything.2)the cash obtained in First Union has been used in early amortization of all goodwill(except that of
BANESTO)so apparently there is no cash coming from there, but the early amortization produced (acording to ARTHUR ANDERSEN auditing
inform)a delay in benefit out-crop estimated in 800 millions of US$.3) STD has around 4.5 billions of US$ in excess of own resources
that can be used when a good opportunity will appear.My feeling is that East-Europe is the next target profiting of the fast
market groving to be produced on the ampliation of UE.
Stkjunky, for your first question my answer is yes, provided we are using equivalent terms(and in any case acording to
spanish law).Let me put an example: suppose you have a share of 1US$ in the capital of a company X, also suppose that the company is
making a lot of benefits.If the company gives you 1US$ as currency dividend then: first the company must pay 25 cents to the
treasury at the same time it pays you 75 cents.Another possibility is to give you another share (stock dividend?) of 1$.In this last
situation you must pay only if your whole properties (shares,houses,cars,and the like )excede of an amount stablishd around 150.000$
and in this case the tax rate is by far lower than if you received the money in currency. Moreover in the
particular case of Santander refund of 20 Pts. there is no question about taxes because it is refunding you a part of your own money.
I don�t now if it is the same in the US right,sorry.But I think that for any operation made in US by a foreing company what may be applied the US law, in the same maner that in any other coutry the local law must be applied.
I don�t belive you are missing anything, probably I had not explained the story clear enough, or/and the tax systems are quite diferent.
Pardon... I forget the possibility of differences in tax systems.Acording to Spanish Law any amount distributed as dividend
or explicit participation on benefits of any share is object of an inmediate tax "pay" ranging 20-25% of the amount paid,
despite the fact than it can be returned (total or partialy)to the shareholder the next fiscal year, acording to the individual
income tax of the shareholder. In practice that means that individuals or entities,on reciving any pay as benefit, authomaticaly
make a loan to the Spanish Treasury at 0% of interest until they made the annual liquidation of taxes. Been that so, it is clear,
that, at least in Spain is more interesting for individuals or entities to get money as a modificati�n of facial value of a share
(not subjet to inmediate pay) than to get it as dividend ,or similar concept, taking into acount what I had explained. This
mechanism is not a particular extravagancy of the spanish tax system, it also applies to other European countries.If in the States is
not the same as I belive,I love your tax system.
At the end of the Banesto adquisition STD plans, in the case of aproval at the annual shareholder meeting,to be held at Mar.21.98
a split 2 for 1 and a return of 20 pts per share to all shareholders. In short,the facial value of the Banco Santander share
is at present of Pts. 250. First it will be reduced to 230 pts., the difference (20 pts) returned to shareholders. Second the
facial value divided to 115 pts. per share (split).Obviously all present shareholder of Banesto will benefit equal than Santander
ones. The triky question is if all the story will end at this point or if it will be continued at the begining of 1999
when they become a fact the fixed exchange rates in the EURO. system.