Banco Santander offers to buy 300 Royal Bank of Scotland branches across Britain

Banco Santander confirms bid for RBS branches

LONDON — Banco Santander said Friday it has made an offer for some 300 bank branches being sold by Royal Bank of Scotland, but the government-controlled Scottish bank says there is still time for other bidders to come forward.

In a brief announcement to the London Stock Exchange, Santander said simply that it had made a bid, which RBS said it was “seriously reviewing.”

News reports say Santander is the only bidder, reportedly offering between 1.5 billion pounds ($2.2 billion) and 1.8 billion pounds for RBS branches in England and Wales and its NatWest offices in Scotland.

“This remains a competitive process and we will continue to do what is right for our shareholders in disposing of these assets which present an excellent opportunity for either a new entrant or a bidder who wants to consolidate their position as a major player in the UK banking sector,” RBS said in a statement.

The bank has until 2013 to complete a sale.

Earlier this week, RBS said it had agreed to sell its operation in Pakistan to Faysal Bank Limited for about $50 million. On Thursday, the Dhabi Commercial Bank said it had agreed to buy RBS’ retail banking operation in the United Arab Emirates in a $100 million deal.

The government controls 84 percent of RBS, which had to be rescued after it led a consortium in a disastrous takeover of the Dutch bank ABN Amro.

In a research note last week, analysts at Evolution Securities said they expect RBS to return to profit in 2011, when they believe the government will start disposing of its shareholding.

The government paid about 50 pence per share, and the stock is now trading at 47 pence.