Banco Sabadell’s board remains opposed to BBVA’s hostile takeover bid, citing concerns over the bank’s worth. Despite BBVA’s efforts to convince the board of the merits of the deal, Sabadell believes that their value is being undervalued. The Spanish Government has also rejected the takeover bid, stating that it could have a negative impact on banking concentration and territorial cohesion.
BBVA has proposed to acquire Sabadell for nearly 11.6 billion euros through a friendly merger proposal, but this was rejected by Sabadell’s board. Now, BBVA is launching a hostile takeover bid at the same price as its initial offer. The majority of Sabadell’s shares are held by large investment funds and retail investors who must decide whether the bank is better off alone or with BBVA’s support.
The ongoing hostilities between BBVA and Sabadell have escalated in recent days, with both sides expressing strong opinions on the proposed merger. With no controlling shareholder in Sabadell, this rare occurrence in the Spanish banking sector will involve regulatory approvals and shareholder decisions that could last more than six months.
As the takeover bid process continues, BBVA must adhere to regulatory requirements and gain approval from various authorities before it can be completed. However, this move has significant implications for both banks and their shareholders as they navigate this complex and challenging process.
The decision now lies with Banco Sabadell’s shareholders who must determine whether the bank is better off alone or with BBVA’s support.
BBVA’s proposed takeover values Sabadell at nearly 11.6 billion euros, offering shareholders a premium and an opportunity to own a stake in BBVA.
Sabadell’s rejection of the offer has prompted BBVA to launch a hostile takeover bid, which is unusual in the Spanish banking sector.
The ongoing hostilities between these two banks have led to strong opinions on both sides regarding this proposed merger.
With no controlling shareholder in Sabadell, which accounts for a majority of its shares held by large investment funds and retail investors, they must decide whether they want to remain independent or accept BBVA’s support.