Trading The Globe: Brazil's Banking Breakout
By: It looks like one of the world's largest banks is betting on Brazil to the tune of $7 billion.
Spain’s biggest bank Santander has announced an offering; about 16% of its Brazil unit to be traded on both the Sao Paolo exchange and the NYSE beginning October 7th.
The new shares are expected to be offered at 22.00 to 25.00 Brazilian reais each, the company said, with final pricing due on Oct. 6. That translates into as much as $7.3 billion.
"Brazil might soon be the new flagship of the Santander group, accounting for over a quarter of its value in 2011," says Evolution Securities bank analyst Arturo de Frias Marques.
The response by investors to the Brazilian share offering will not only show if Santander's early expansion in the country has paid off -- but if other banks will also benefit from Brazil's blossoming economy.
Find out what Tim Seymour has to say about the offering and how to trade Brazil. Watch the video now!
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Trader disclosure: On Sept. 21st, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AA), (AAPL), (BAC), (EEM), (FITB), (INTC), (RIMM), (RIG), (SBUX); Seymour's Firm is Short (PBR); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman Owns (RIG); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT), (PLCE), (HPQ); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Terranova Owns (FCX) Puts; Terranova Owns (CAT) Puts; Terranova Is Short (WFC); Terranova Is Short (AA); Terranova Is Short (WYNN); Terranova Is Short (JWN)
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