Friday, February 03, 2006

Pennsylvania rescues Sovereign

The Pennsylvania legislature late Wednesday stuck a dagger into Relational Investors LLC's efforts to stop Philadelphia-based Sovereign Bancorp Inc. from selling a minority stake to Santander Central Hispano SA of Spain and using the money to acquire Brooklyn, N.Y.-based Independence Community Bank Corp. In a closely watched case pitting shareholders' rights groups against "entrenched management", the Pennsylvania legislature has apparently waded in to bar the "Barbarians at the Gates".

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