In Blow To Shareholders, NYSE OKs Sovereign Deal

Law360, New York (November 27, 2005, 12:00 AM EST) -- In a significant setback for the largest shareholders of Sovereign Bancorp, the New York Stock Exchange has declined to compel a vote by investors before the bank can sell off a portion of its assets to fund a major acquisition.

Pension funds, including Calpers, had written to the NYSE in support of a demand for Sovereign to hold a shareholder vote on a plan to sell a 19.8% stake of the Philadelphia-based bank to Spain’s Banco Santander Central Hispano SA to raise $2.4 billion.

The bank...
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