Santander to sell asset management unit-paper

MADRID (Reuters) - Spanish banking giant Santander is in talks to sell its asset management unit for up to 3 billion euros, Spanish media reported on Thursday, without citing sources.

The sale comes after Monday's announcement that Santander (SAN.MC: Quote, Profile, Research), the euro zone's largest bank by market capitalization, is buying British bank Alliance & Leicester (ALLL.L: Quote, Profile, Research) for 1.3 billion pounds to provide critical mass to its existing UK bank Abbey.

Expansion said Santander Asset Management would fetch 2-2.5 billion euros while Cinco Dias said the bank valued the unit at 3 billion euros.

Templeton, JP Morgan (JPM.N: Quote, Profile, Research) and State Street (STT.N: Quote, Profile, Research) are among those talking to Santander, said El Pais.

Under the sale agreement, the buyer would sell asset management services at Santander branches. Santander is dealing with U.S. companies which could design dollar funds for the Latin American market, said Cinco Dias.

Analysts said the operation could be financially positive for the bank, but could also worry the market if interpreted as evidence the bank is building up capital for a new buy.

"The fact that Santander has put this asset up for sale might raise some concerns that the bank could be preparing itself to carry out new acquisitions," said BPI in a note to clients.

A spokesman for Santander declined to confirm or deny the reports.