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Date	08/05/2000
Companies	SERFIN - BANCO SANTANDER CENTRAL HISPANO -
Subject	BSCH wins bidding for Serfin

	Banco Santander Central Hispano has won the bidding for Grupo Financiero Serfin with a bid of MXN14.56bn (E1.7bn UKP1.0bn $1.5bn). Authorities revealed the bid beat the second highest, from HSBC, by 20%. It was equivalent to 1.6 times book. The purchase will place BSCH clearly ahead as the largest South American bank as well as strengthening its position in Mexico, important as a member of the North American Free Trade Area. There are some aspects of the pricing which will only be settled after a 90 day due diligence period - though the extent of any variation possible was not revealed. The bid was handled for the government by Goldman Sachs. HSBC had a 19% holding in Serfin which will now be transferred as part of the process. Serfin has a 14% share of the banking market and 560 bank branches making it third largest in Mexico. BSCH already own Grupo Financiero Santander Mexicano, of which Serfin will become a part. The bank intends to keep the two brands. The multiple of book value, at the high end of expectations may encourage the government to accelerate plans for the sale of Bancrecer, the fifth largest bank which is next in line for privatisation.
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