Spain's Santander, eurozone's largest bank, plans to raise $8.8 billion through share sale

Associated Press

Spain's Banco Santander, the eurozone's largest bank by market value, says it plans to raise up to 7.5 billion euros ($8.8 billion) in a share sale.

In a statement Thursday, Santander says the increase would represent 9.9 percent of its overall capital.

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The move comes about four months after Ana Botin took over as chair of the bank after the death of her father, former chairman Emilio Botin.

The bank said also it was cutting its quarterly dividend payments to 5 euro cents per share, from 15 cents in 2014. It will pay three dividends in cash and one in shares.

Trading in Santander's shares was temporarily suspended in Madrid. Prior to the announcement, the shares were up by 3.3 percent at 6.9 euros.