Gonzalez-Bueno believes that BBVA’s takeover bid for Sabadell “has no signs of success.”
Banc Sabadell CEO Cesar Gonzalez-Bueno said this morning in Barcelona that BBVA’s hostile takeover “shows no sign of ending.” He said this at the Matins Esade conferences held by the business school together with Vanguard.
During his speech to several hundred business leaders and students, Gonzalez-Bueno warned that the operation, if it goes ahead, would harm SMEs due to less competition. When asked what would happen if the takeover falls through, the CEO is optimistic about the stock’s future strength. “If the takeover bid goes away, there’s no telling what will happen” to the price, he said, before adding that there is “clearly supportive fundamental value” in the stock.
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In the same tone, Sabadell President Josep Oliu asked at the beginning of the week that banking consolidation, a union of enterprises, always creates value. At the same time, he noted that the company will have a better path on its own, arguing that the loss of identity or liquidation of the company will have an impact on the customer base and business dynamics. Managers of both companies use every means of intervention to protect their position. A few weeks ago, the president of BBVA warned of risks for Sabadell shareholders due to the possible rejection of the takeover bid.
Gonzalez-Bueno once again insists that it is better for the Sabadell shareholder to remain in the capital of the Sabadell-born bank due to the obligation to pay remuneration of $2,900 million in dividends. The bank’s chief executive recalled that in order for BBVA to comply with the dividend proposal, it would have to put about $18 billion on the table.