Santander Chairman Botin shows nerve and clout

By Paul Day

MADRID (Reuters) - When journalists asked Santander Chairman Emilio Botin of his view of the current global economic turbulence at this year's annual shareholders' meeting, he was dismissive.

"Crisis? Who's in crisis? Santander is certainly not in crisis," Botin, 73, told a press conference. "The crisis is like a child's fever. It starts strong, but then goes away."

Botin's reflections on the massive upheavals in the global economy may seem surprisingly relaxed, but analysts agree Santander, the euro zone's largest bank by market value, continues to provide a compelling investment case.

News that Santander -- whose shares have outperformed European banks as a whole by 55 percent through the past 12 months -- had reached a takeover agreement with Alliance & Leicester worth 1.3 billion pounds came as little surprise for European bank sector watchers.

"Santander is a very well run, profitable retail bank and while it's certainly not immune to the credit crisis, it isn't faced with the same liquidity and writedown risks as its peers," said Daragh Quinn, analyst for Lehman Brothers.

Such a verdict is effectively a tribute to the skills of Botin, whose name means 'bounty' in Spanish and who took over running Santander from his father two decades ago.

He has since pioneered a string of European and Latin American acquisitions to turn Santander into what he calculates is the world's third biggest bank, by profit.

With a reputation as Spain's most high-profile corporate leader, Botin -- who is married with six children -- is known for his impeccable dress, close links with Spanish governments regardless of political stripe and fierce control of bank decision making.