EXECUTIVES at Abbey National's would-be owner, Santander are flown to business meetings in Latin America in the comfort of a Lear jet, which sources suggested are valued brand new at up to $50m.

The jet is owned by a leasing company that is in turn owned by the Spanish bank.

When its executives are not using the jet it is rented out for commercial use.

Sources last night suggested the use of private jets was common for many of Spain's top companies because of their strong links with Latin America, and the difficulty of travelling internally in South America.

Reports from both the Spanish and South American press have previously referred to Santander chairman Emilio Botin's use of a private company Lear jet, made by Falcon. Spanish daily, El Mundo, has reported Botin's use of a three-engine, 36 person capacity jet.

Since agreeing an (pounds) 8bn all-share offer for Britain's Abbey National, Santander's track record on corporate governance has been under the spotlight, including revelations of one former director's (euros)5m pension for life, unnamed executives being entitled to five times their fixed salary if they are sacked, and lucrative change of control clauses for executives.

Despite the embarrassing publicity surrounding Santander's largesse, analysts and shareholders are more concerned with the current level of the Spanish bank's offer for Abbey.

Alan Weatherston, analyst at Collins Stewart, said: ''As far as I'm concerned the issue is not whether they have the use of a Lear jet that is all sound and fury compared with the fundamentals of the deal, which is not a particularly attractive one if there is a UK bidder out there.

''Hard finance, or hard cash, is what will ultimately decide it in the end.''

Abbey shareholders, who will own more than 20% of an enlarged Abbey/Santander, are attempting to convince HBOS, formed from the merger of Halifax and Bank of Scotland, to enter the fray with a counterbid.

HBOS has outlined its interest but has yet to decide whether to make a formal bid.

Nonetheless, the continual stream of negative publicity about Santander's extravagance is sure to concern corporate governance hawks in the UK, which holds British companies to more stringent standards.

One UK banker, who asked not to be named, expressed some surprise at Santander's extravagance, saying: ''I have to get chartered flights, or use the train like everyone else.''