Notable Mergers and Acquisitions of the Day 10/14: STD/SOV, IEX

October 14, 2008 10:08 AM EDT

• Banco Santander, S.A. (NYSE: STD) and Sovereign Bancorp Inc., (NYSE: SOV) announced that Banco Santander will acquire Sovereign in a stock-for-stock transaction. Santander currently owns 24.35% of Sovereign's ordinary outstanding shares. The Capital and Finance Committee composed of independent directors of Sovereign requested that Santander consider acquiring the 75.65% of the Company it did not currently own. The Capital and Finance Committee evaluated the transaction and recommended the transaction to the full Board.
  
  Under the terms of the definitive transaction agreement, which was approved by the Executive Committee of Santander and unanimously approved by the non-Santander directors of Sovereign, Sovereign shareholders will receive 0.2924 Banco Santander American Depository Shares (ADSs) for every 1 share of Sovereign common stock they own (or 1 Banco Santander ADS for 3.42 Sovereign shares). Based on the closing stock price for Santander ADSs on Friday, October 10, 2008, the transaction has an aggregate value of approximately US$1.9 billion (euro 1.4 billion), or US$3.81 per share. The transaction meets Santander's criteria for acquisitions, both strategically, by significantly enhancing the geographical diversification of the Group, and financially, with a projected net profit for Sovereign of $750 million in 2011.
  
  
• IDEX Corporation (NYSE: IEX) today announced the acquisition of iPEK Spezial-TV, a leading provider of systems focused on infrastructure analysis, specifically waste water collection systems.
  
  Headquartered in Hirschegg, Austria, iPEK has annual revenues of approximately $25 million. iPEK will be operated within IDEX's Fluid and Metering Technologies segment and is expected to leverage the ADS Environmental Services acquisition which closed in January. With a cash consideration of approximately $43 million, iPEK is expected to be accretive to IDEX's earnings in 2009.

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