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PHILADELPHIA (AP) - Sovereign Bancorp's largest shareholder filed a lawsuit late Monday against the bank and the Spanish conglomerate acquiring a stake in the company, seeking the right to sell its shares at a "fair value."
Relational Investors LLC of San Diego said Banco Santander Central Hispano S.A.'s investment in Sovereign would give Santander direct or indirect voting power over at least 20 percent of the Philadelphia bank's common shares.
As such, it would constitute a "control transaction" under Pennsylvania's business corporations law. If Santander closes on the investment, Relational argues, shareholders have the right under state law to make Santander pay cash for their shares at a "fair value."
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