File Image: IOL

London - Promotora de Informaciones SA is working with Banco Santander SA on a potential capital increase to bolster its balance sheet after talks to sell an educational book publishing unit stalled on price, according to people familiar with the matter.

The company, known as Prisa, is considering raising about 400 million euros ($468 million) or more in a share sale, the people said, asking not to be identified because the deliberations are private. Talks to sell its educational books publisher business Santillana to private equity firms including Rhone Capital LLC stalled on valuation, the people said.

Read Also: SA's own 'Guptas': Danny and Jehan Mackay?

No final decision has been made and Prisa may still decide against a share sale and resume talks to sell Santillana or explore other options, the people said. The Madrid-based company said last month it is considering various options to cut leverage and is holding talks with several parties.

Representatives for Prisa and Santander declined to comment. Shares of Prisa declined 1% to 3.17 euros at 9:01 a.m. in Madrid. The stock has lost 40% this year.

In previous attempts to sell Santillana, Prisa was seeking a price of as much as 2 billion euros, people familiar with the matter said at the time. The firm’s efforts to raise cash led to the sale of Prisa’s Portuguese unit Media Capital in July for 440 million euros, including debt.

-BLOOMBERG