NEW YORK (TheStreet) -- Shares of Banco Santander (Brasil) SA (BSBR) continue to decline, down 3.24% to $5.08, in morning trading Tuesday after parent company Banco Santander S.A. (SAN) announced Friday it had increased its ownership of its Brazilian subsidiary.
Some investors in the Brazilian unit accepted Banco Santander's offer to buy out minority shareholders, according to a regulatory filing Friday. Santander will own 88.3% of its Brazilian unit after investors who hold 13.65% of BSBR's capital accepted the buyout offer.
Banco Santander also announced it would issue 370.9 million shares to complete the offer.
When Banco Santander announced the offer in May, some investors in the Brazilian unit said the offer would have led to a loss for them, as they thought the company's slumping share value was poised for a rebound, according to the Wall Street Journal.
The news caused Citigroup to downgrade its rating on Banco Santander (Brasil) to "sell" and cut its price target to $4.60.BSBR data by YCharts