DealZone

Spain’s Santander confirms plans to spin-off 15 percent of its Brazilian business in a flotation potentially worth over $3 billion.

Reuters reported on July 21 that the bank was mulling an initial public offering in the second half of the year, and advisers have been appointed, people familiar with the matter say.

Santander will lead and underwrite the share sale alongside Credit Suisse and Bank of America/Merrill Lynch. Banco Pactual, the Brazilian bank sold by UBS in April, will be a bookrunner on the deal, the sources say.

Santander boss Emilio Botin has high hopes for the Brazilian unit, and meeting Brazilian soccer legend Pele, above, won’t have done his bank’s brand any harm. Santander is Brazil’s third biggest private sector bank by assets, after beefing up through the purchase of ABN Amro’s local bank.

Santander will be the latest in a string of companies in Brazil to capitalize on improving market conditions by selling shares to raise money.

UBS and Credit Suisse both have strong wealth management businesses — and the new year seems to have brought new hope.

UBS, which has written down more toxic assets than any other European bank, says it has had an “encouraging” start to 2009, with inflows into both its wealth and asset management businesses in January. Credit Suisse says it had a “strong start to 2009″ and was profitable across all its units so far this year.

This could be music to the ears of the Swiss, whose country may be faring better than others in the downturn (so far, at least) but is particularly reliant on its financial sector.