MADRID (AFP) - Emilio Botin, head of the largest Spanish bank Banco Santander Central Hispano (SCH), is to be tried on charges of misappropriating funds, judicial sources said, quoting High Court judge Teresa Palacios.
The sources said the trial would go ahead at a date to be determined after Palacios rejected prosecutors' advice to shelve the case against Botin and three former SCH directors, electing to press on with charges brought by a clients association.
Botin, one of Spain's richest men, and ex-colleagues have been charged with helping customers commit tax fraud in the late 1980s and with falsifying documents by not giving authorities the correct names of loan assignment beneficiaries.
A total of 28 clients also face trial, the judicial sources said, adding that the case was likely to open in the first half of 2005.
SCH issued a statement late Wednesday denying any wrongdoing by bank staff.
"The bank reiterates the absolute legality of all its undertakings in the matters under investigation and manifests its complete dissatisfaction with the judicial decision."
The association that brought the case is seeking 170 years in prison and a 525-million-euro (645-million-dollar) fine for each of the charges, along with damages and interest.
SCH's share price barely moved after the news broke as analysts said it had already been taken into account.
"The only difference is that Botin will be spending more time in court than overseeing the merger (with British bank Abbey National)," one analyst told AFP.
The case was first brought against SCH in 1992, targeting Botin and four senior managers, one of whom has died since the alleged irregularities took place.
An investigation probed operations carried out in the late 1980s when Botin was chairman of Santander Bank prior to its merger with Central Hispano in 1999.
SCH has been in the headlines recently because it is trying to buy Britain's sixth-largest banking group Abbey National for 8.9 billion pounds (13.0 billion euros, 16.0 billion dollars), in what would be Europe's largest ever retail banking tie-up.
Only three weeks ago the European Commission approved the proposed takeover, saying it "raises no competition concerns since the two banks presently operate mostly in different countries."
EU competition commissioner Mario Monti termed the deal "a contribution to the objective of the Commission to have a more integrated financial services market."
SCH, which says it will seek a London listing in light of its bid, is now waging an ad campaign in Britain to woo investors unconvinced of the merits of holding Spanish paper, since SCH shares account for most of its offer.
Botin and his family dominate the SCH board even though they hold only 2.8 percent of the bank's equity, raising questions over corporate governance at the institution.
Botin's brother left the board earlier this year but was replaced by his son Javier. Another son, Emilio, is also on the board, as is a daughter.
Botin also faces an investigation over compensation payments to former bank co-chairman Jose Maria Amusategui and former chief executive officer Angel Corcostegui upon their resignation.
Amusategui was granted pension payments worth a reported five million euros (six million dollars) per year.