(Alliance News) - Banco Santander SA has partnered with investment bank Peel Hunt LLP, with the aim of allowing both firms to underwrite the UK's largest initial public offers, it confirmed on Monday.
The unusual European tie-up was first reported by the Financial Times, which said Peel Hunt will be able to offer access to underwriting from Santander to customers looking to raise money, while Santander can tap into Peel Hunt's client base and contacts to secure positions on UK IPOs.
The partnership will be on a deal-by-deal basis, with both sides able to choose when to use the arrangement, the FT added.
The collaboration will combine Peel Hunt's research, distribution capabilities and equity capital markets expertise, with Santander Corporate & Investment Banking's global scale and underwriting capabilities, Santander said on Monday.
Peel Hunt Chief Executive Steven Fine said the collaboration will combine Peel's "in depth market knowledge and expertise with a powerful underwriting capability".
The agreement extends beyond IPOs to the full range of share offerings, including rights issues and placings to support mergers and acquisitions activity, along with secondary offerings, including sell downs of large stakes by major shareholders.
'We aim to establish Santander CIB as one of the leading corporate and investment banks in Europe, and this collaboration is an important step towards that goal," said Global Head of Santander CIB Jose Linares.
"The agreement with Peel Hunt combines our respective strengths and expertise to expand our client reach and further enhance the services we offer."
Santander shares were up 1.5% to EUR2.89 in Madrid at midday on Monday.
By Will Paige; willpaige@alliancenews.com
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