Santander-M&T Talks Hit Rough Patch

Discussions between Spain's Banco Santander STD and New York-based M&T Bank MTB regarding a deal in which M&T would acquire Santander's Sovereign BancorpSOV have apparently stalled. The main sticking point is about who gets control of the merged entity, the Wall Street Journal reported, citing people familiar with the talks. M&T Chief Executive Robert Wilmers wants guarantees that his team will run the day-to-day operations of the combined bank, which Santander officials are unwilling to do, the Journal reported. Berkshire Hathaway BRK BRK-B) is M&T's largest shareholder. Observers are speculating that an acquisition of Sovereign would weaken M&T because of the former's problems with bad loans. M&T has been one of the stronger U.S. banks, even during the financial crisis.