Jan. 4 (Bloomberg) -- Banco Santander SA dropped the most in two months in Madrid as new stock sold last month to bolster capital at Spain’s biggest lender started trading.
The shares fell 26 cents, or 4.3 percent, to 5.77 euros at 12:02 p.m. in Madrid, the largest decline since Nov. 1.
Santander raised 1.94 billion euros ($2.5 billion) in December by swapping non-listed preferred securities sold to retail customers in 2009 for newly-issued stock that can be accounted as core capital. The new issue amounted to 3.84 percent of total shares outstanding at the Madrid-based bank.
Santander shares have lost 52 percent since their peak in January 2010 as Europe’s sovereign-debt crisis pushed the cost of borrowing in the region to a record high. The bank needs to raise 5.22 billion euros to meet the European Banking Authority’s capital target.
--With assistance from Emma Ross-Thomas in Madrid. Editors: Andrew Rummer, Will Hadfield
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