Santander buying and selling

RUMOUR OF THE DAY

SANTANDER'S spending spree is unlikely to end with last week's acquisition of Alliance & Leicester, analysts predicted last night.

But one source said further purchases by Europe's second-largest bank could be delayed by the reported sale of its asset management and insurance divisions.

The source said the asset sales were still in an early phase and that Santander was testing the water rather than trying to raise money quickly.

Santander has declined to comment on the rumoured sale of the divisions.

Dresdner Bank and Postbank are reportedly in the frame as possible targets for Santander, but analysts last night said the Spanish bank may also be looking at acquisitions in Ireland, Colombia and other countries in Latin America.