US EditionBoard of Spain's Sabadell Bank Rejects BBVA Takeover Bid
Sabadell's board cites undervaluation and shareholder value destruction in rejecting BBVA's €15 billion bid, urging opposition amid regulatory conditions and strategic defenses.
- In May 2024, BBVA, Spain's second-largest bank, launched a 15 billion euro all-share hostile takeover bid for Banco Sabadell, Spain's fourth-biggest bank near Barcelona.
- The bid followed a June government approval that imposed a three-year freeze on any merger, while Sabadell's board unanimously rejected the offer on Friday, urging shareholders to shun it.
- Sabadell's CEO Cesar Gonzalez-Bueno said the bid undervalues the bank and faces "insurmountable" execution risks, as the board said the offer does not reflect Sabadell's intrinsic value.
- Scope Ratings noted potential cost synergies of about 450 million euros annually, calling the deal appealing and saying it would create a third dominant Spanish bank controlling nearly 65% of the market.
- The takeover outcome remains uncertain as Sabadell's dispersed shareholders have until October 7 to decide, with analysts noting the deal's economics are diluted but the industrial rationale endures.
46 Articles
46 Articles
Board of Spain’s Sabadell bank rejects BBVA takeover bid
Spanish bank Sabadell on Friday said its board had rejected larger national rival BBVA's hostile takeover bid and urged shareholders to shun it as the clock ticked down on their final decision. The proposed deal aims to create a European banking powerhouse capable of competing with industry heavyweights such as Santander, BNP Paribas and HSBC.
The governing body of the Catalan bank believes that the offer "destroys value for the shareholders of Banco Sabadell and that the strategy as an independent entity will generate superior distributions for its shareholders."The CNMV authorizes the BBVA OPA on Banco Sabadell The board of directors of Banco Sabadell rejects the public offer of acquisition (OPA) launched by BBVA. In line with the opposition shown to the operation since its launch 1…
The Mexican businessman David Martínez, with 3.9% of the capital, also votes against a question of price, although he has abstained in the writing of the report. Sabadell talks about unfinished synergies and a risk per emergent that whoever comes must assume.
The investment funds that are in the capital of the Sabadell Bank are a key part of the opa launched by BBVA. Their acceptance or rejection of the offer will tilt the faithful of the balance. But not all are equal. More than 10% of the capital of the Sabadell Bank is in the hands of indexed funds. This type of vehicle has the mandate to follow the evolution of a certain stock index — be it the Ibex 35 or the Stoxx 600. As long as the Sabadell re…
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