THE criminal court in Madrid will next month set a date for the trial of Emilio Botín, the chairman of Santander Central Hispano, the bank bidding more than £8 billion for Abbey.
Señor Botín and two former directors, Jose Maria Amusategui and Angel Corcostegui, face charges of misappropriating shareholder funds following the merger of the Santander and Central Hispano banks.
The charges against Señor Botín have been brought by a disgruntled shareholder, Rafael Perez Escolar.
He claims that the severance terms granted to the two former Central Hispano directors were illegal. Señor Amusategui’s severance package was more than £56 million, while Señor Corcostegui’s was almost £100 million. The payouts were inflated by payments in lieu of pensions. The case is expected to be heard in the middle of next year.
Señor Botín has always maintained that the payments complied with bank regulations and Spanish law and that the prosecutor’s office has repeatedly advised that the charges be dropped. The bank has also said that the payments were approved by its board and shareholders.
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The allegation against Señor Botín is that he used bank money to buy off the executives, a charge he denies.
Señor Botín has expanded Santander through a series of audacious deals both in Spain and in South America.
If he succeeds with the Abbey acquisition, it will be his biggest deal to date. However, HBOS, the British bank, is pondering a counterbid. Directors of HBOS could meet this week to consider whether to enter the fray.