Three days after a friendly merger offer failed, the bank BBVA launched a hostile takeover bid this Thursday against its competitor Sabadell, an operation harshly criticized by the Spanish government.
The public acquisition offer is proposed with the same conditions as the merger proposal rejected by the board of directors of Sabadellthat is, an exchange of one new BBVA share for 4.83 Sabadell shares, the second largest Spanish bank specified.
This offer, detailed in a note sent to the Spanish stock market watchdog (CNMV), values Sabadell at around 12.35 billion dollars. an amount that the management of this last entity, the fourth in Spain, considers insufficient.
The Spanish government was quick to strongly reject the hostile takeover bid.since the operation can inject “instability and uncertainty and additional volatility into the market”, as well as increase “concentration” in the banking sector, according to the Minister of Economy, Carlos Body, on public television.
“The government has the final say when authorizing the operation,” Corps warned.
The number three of the Spanish government, Yolanda Díaz, considered on her side that the OPA is “contrary to the interests” of Spain, could destroy “a lot of employment” and strengthen the “oligopoly” in the sector.
“It means liquidating Sabadell for the benefit only of the foreign investment funds that own BBVA,” denounced on the social network .
After an extraordinary meeting on Monday afternoon, Sabadell considered that the BBVA proposal “significantly undervalues” it and is contrary to the interests of its shareholders, clients and employees.
The Sabadell board of directors said they trusted “fully in the growth strategy” of the entity “and in its financial objectives”, and believes that “as an independent entity it will generate greater value for its shareholders,” as stated in a statement.
BBVA, who said he regretted his competitor’s position, assured him in a letter that he had “no room” for maneuver “to improve” his offer, which he considered generous. With this proposal, Sabadell shareholders would have held 16% of the future banking giant.
BBVA’s offer is now in the hands of Sabadell shareholders. The bank of Catalan origin does not have any controlling shareholder, but it does have multiple shareholders that do not exceed 4%, including large investment funds.
