Sovereign Bancorp to Acquire Independence

Sovereign Bancorp Inc. said it would acquire Brooklyn, N.Y.-based Independence Community Bank Corp. for $42 a share in cash, or about $3.6 billion.

Sovereign, the No. 3 U.S. savings and loan, also said that Spain’s biggest bank, Santander, would become Sovereign’s largest shareholder through the purchase of a 19.8% stake for $27 a share in cash, or $2.4 billion.

Santander said it had the option to buy Philadelphia-based Sovereign outright starting in July 2008.