BBVA bids for hostile takeover of Banco Sabadell in fiat money

It was a movement that had been missing, and it was finally here. BBVA has announced a hostile takeover (OPA) of the entire Banco Sabadell. An offer that does not include an improvement on the terms already proposed in the merger offer, so it is offered on the same terms as the takeover offer, and which was rejected by the Catalan bank.

The consideration offered by BBVA to Sabadell shareholders is therefore one newly issued share for 4.83 Sabadell shares.

as stated in the proposal submitted to the National Securities Market Commission (CNMV).

Takeover offer targeting all shares of Sabadell, depends on achieving shareholder consent of more than 50%..

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Following the rejection of the merger proposal by Banco Sabadell, the takeover proposal submitted and announced by BBVA early this Thursday morning is considered hostile, since the Sabadell board has already rejected the proposal in the Council of Administration.

Market sources urgently consulted warn that Europe does not welcome a resumption of these hostile operations. In Spain, to find a precedent for similar characteristics in the history of the banking sector, we must go back in time.

almost forty years (1987) after Banco Bilbao’s hostile takeover bid for Banesto. Other sectors have seen more recent developments. The most notable and high-profile recent development was Gas Natural’s deal for Endesa, which ultimately fell through and led to Endesa’s acquisition by Enel.

More recently, IFM’s takeover bid for 22.7% of Naturgy, which, although not approved in principle by Naturgy, resulted in the acquisition of more than 10% by an Australian superannuation fund and was not classified as hostile as it did not seek a takeover of the company.

The same sources also note that Sabadell shareholders will clearly be very difficult to be tempted by an offer that their own board of directors considers insufficient and which has had a reflection on the market unfavorable to the interests of BBVA, rewarding the abandonment of Sabadell and the punishment of the activities of the bank of Carlos Torres.