Institutional investors (rightly) moaning about Barclays should be grateful they are not private shareholders. Banco Santander’s decision not to allow small UK shareholders to participate in its capital-raising is just as much a flouting of the pre-emption rights principle as the Barclays snub.

The Spanish bank, thanks to share-financed acquisitions of Abbey National and Alliance & Leicester, is one of the most widely held shares in Britain. Only HBOS has a bigger shareholder army.

Santander claims that logistical difficulties are the reason Brits are being excluded from taking part in its rights issue. Certainly, the 15-day capital-raising period is tight, but it is still surely time enough to send out documents and receive applications. If such a tight timetable is genuinely a problem for companies with large shareholder registers, then the Financial Services Authority needs to take this into account in its inquiry into shortening rights issue periods. Lengthy timetables have made bank capital-raisings in the UK nerve-racking affairs.

Santander plans to sell British shareholders’ rights and send them the proceeds. The money may be just about enough to buy a stocking filler after broking fees and currency conversion.

Then again, it may not be such a bad thing. Santander’s shares are on the slide. What appeared to be a deeply discounted offer ten days ago is now less favourably priced. If the economic news from Spain continues to sour and Santander’s share price continues to wilt, the exclusion of British retail investors could turn out to be a blessing.

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