Report: Parent May Re-Acquire Santander Consumer USA Holdings Inc

Santander Consumer USA Holdings Inc. SC gained 14 percent Tuesday on a report that its Spanish-based parent company will acquire the 40 percent stake it doesn't currently own. About 28 percent of the U.S. subprime auto lender is held by public shareholders, with another 13 percent held by its Chief Executive Thomas G. Dundon. Santander Consumer shares are off by nearly 20 percent since its January initial public offering. The company's controlling shareholder Banco Santander S.A SAN thinks the unit is an undervalued asset that may perform better outside of public markets, according to unnamed sources cited by Bloomberg on Tuesday. No final decision has been made and Santander could choose to do nothing, according to Bloomberg. Santander shares dipped in August on news it received civil subpoena for documents related to its subprime auto lending business from the Department of Justice and a similar request in October from the Securities and Exchange Commission. The New York City Department of Consumer Affairs launched a similar investigation last month. Banco Santander sold a major stake in the Santander Consumer unit to a group of private equity firms in 2011, according to Bloomberg. Santander Consumer traded recently at $21.00, up $2.70.