Shares of Santander Consumer USA Holdings Inc SC 1.79% briefly spiked as high as $12.19 early Tuesday, and over $14 in the pre-market session.
A El Confidencial report attributes last Friday’s brief spike to near $13 and Tuesday morning’s strong open to rumors of a potential buyout.
Both Friday and Tuesday’s price spikes in Santander Consumer USA Holdings were short-lived, as the stock closed at $11.85, down 0.4 percent.
BTIG’s Mark Palmer told Benzinga that most of the buyout buzz comes from speculation that parent company Banco Santader, S.A. (ADR) SAN 2.52% could potentially buy back its U.S. subsidiary. Santander Consumer USA Holdings specializes in auto loans and other unsecured consumer lending products in the United States.
According to Palmer, Santander Consumer USA Holdings may be better suited to operate as a private company. He noted that Banco Santander leadership has indicated in the past that the company intended to either straighten out its U.S. holding company’s business or sell it at some point.
Since going public in 2014 at $24 per share, Santander Consumer USA Holdings has been…
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