bbva he launched ahostile takeover offer su Sabadell: the takeover evaluates the Spanish bank 11,5 billion of euros after the Sabadell board had rejected the "friendly" proposal. Banco Bilbao Vizcaya puts it on the table his action newly issued every 4,83 shares of Sabadell, which correspond in cash to 2,12 € per share: numbers that represent a 30% premium over the April 29 closing price of both banks and a 50% premium over the weighted average of prices over the last three months.
Bbva, the reactions of the stock market and the government
Meanwhile, in the morning on the Madrid Stock Exchange, Sabadell rose (+4,9%) while BBVA fell (-5,7%). And the reaction of the Spanish executive was not long in coming: "The government will have the last word when it comes to authorizing the operation", declared the Minister of Economy, Charles Body, on public television, adding that the executive does not approve “this hostile takeover bid, both in form and substance, due to its potential harmful effects.”
Bbva insists, here is the hostile takeover bid
THEopa, aimed at all of the Catalan bank's shares, is subject to obtaining more than 50% acceptance from shareholders. This is the same offer made last April 30th by the BBVA group, which estimated at approximately 11,5 billion the value of the Catalan credit institution and which according to the Sabadell board of directors "significantly underestimated" the bank and its growth prospects as an independent entity.
After the rejection, the BBVA board of directors, which met yesterday, decided to launch the hostile bid by offering shareholders the same conditions. The exchange of shares will be carried out through the issuance of new ordinary securities reserved for holders of Sabadell shares. With the'acquisition by absorption, BBVA would constitute the second Spanish banking group by capitalisation.
" economic concentration resulting from the offer must be notified to the National Markets and Competition Commission and requires the express or tacit authorization of the Spanish Administration", reports the communication to the CNMV.
The Spanish government says no
Il Spanish government expressed his opposition to the hostile takeover bid launched by the BBVA group on 100% of Banca Sabadell "both in form and in substance". And it believes that the operation "introduces potential harmful effects" in the Spanish financial system since it would lead to an increase in the concentration of the sector "which could have a negative impact on work and in the provision of financial services", report sources from the Ministry of Economy, Trade and company cited by the agency Europa Press. “An excessive level of concentration would introduce an additional potential risk to financial stability, as indicated by the governor of the Bank of Spain”, add the sources of the ministry headed by Charles Body.
Update at 11.35
