Santander Ordered To Pay Up In BNY Rate Dispute

Law360, New York (December 13, 2011, 7:37 PM EST) -- A New York federal judge on Tuesday ruled that Santander Holdings USA Inc.'s 2009 takeover of Sovereign Bancorp Inc. triggered a change-of-control provision and should have raised the interest rate on bonds held by Bank of New York Mellon Trust Co. NA.

U.S. District Judge Richard M. Berman ruled that the 2009 deal triggered a change-of-control provision in a 2004 Sovereign debt offering even though Santander purchased the Boston-based bank using American Depository Shares.

The contractual language said that the change-of-control provision would not kick in...
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