As we’ve reported almost two months ago, Santander do Brasil is putting a large stake of its operations for sale… even after its global CEO has denied the rumors. Like they always say: never believe a rumor until it is officially denied.

Senior executives familiar with the negotiations confirmed to Estadao that Santander is in fact negotiating part of its Brazilian operation. According to the sources, the transaction involves the sale of 30% to 40% of the business for about R$64 billion. Santander’s intent is to raise capital in order to meet the Spanish government’s demand for bank provisions.

Santander, however, doesn’t want to completely abandon the Brazilian operation which is the most profitable for the Spanish bank, accounting for 30% of the bank’s profits.

Allegedly, president Dilma Rousseff had barred the sale of Santander to Banco do Brasil (which has its own sinking unit to watch for). Bradesco is the other party interested in Santander’s business.

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