“It makes sense and benefits shareholders.”
Banco Santander is watching its rivals’ battle from the sidelines, but its financial analysis for investor clients favors a takeover bid, according to a note sent to clients accessed by EL MUNDO.
“We believe that this transaction makes sense and that the shareholders of Banco Sabadell “They are the ones who stand to benefit the most from the proposal,” he argues regarding the organization’s board of directors’ position in opposing the hostile proposal made by
Banco Santander is watching its rivals’ battle from the sidelines, but its financial analysis for investor clients favors a takeover bid, according to a note sent to clients accessed by EL MUNDO.
“We believe that this transaction makes sense and that the shareholders of Banco Sabadell “They’re the ones who stand to benefit the most from the proposal,” he says of the organization’s board of directors’ stance against a hostile bid from the bank he runs. Carlos Torres. “We estimate that Sabadell’s earnings per share will improve by 25% compared to continuing alone, and BBVA will improve by 5%.”
The analysis is entitled “BBVA Strikes Back.” It estimates that the proposed share swap would value Banco Sabadell at $11.5 billion. This is not an internal report on the impact of the merger on Santander, but one of the reports the Cantabrian group’s investment bank provides to clients to help them with the stock market.
The financial analyzes that different banks and securities firms send to their clients vary depending on which of them this newspaper had access to. “We continue to believe that the merger of BBVA and SAB will be a beneficial transaction for both banks. under appropriate conditions,” the financial company said in a statement. Alantra.
However, he lowers his buy recommendation on BBVA shares. “A hostile proposal is usually a lengthy process. (year?), which leaves uncertainty regarding the price BBVA will ultimately pay, the regulatory/political hurdles BBVA may face (any antitrust appeal would reduce value creation), and potential damage to the Sabadell franchise.
GVC Gesko considers the continuation of the takeover offer to be negative for everyone. “This process is likely to continue to generate legal disputes, damage the reputations of both companies and have a negative impact on the businesses of both. We consider the takeover to be insufficient and believe it should not proceed.”
For Bestinverinstead of, “BBVA’s offer is generous, fair and makes sense.Therefore, we recommend that shareholders accept the capital increase proposal. We estimate that this transaction will result in an earnings per share revaluation of 7% (compared to the 3.5% estimate) and a projected post-synergy net profit of €10.2 billion (…) We believe that for shareholders Sabadell, the operation is very interesting.”
However, he says he understands Banco Sabadell’s strategy, although he believes approval will be the result. “We believe that this process will take time, and we hope that all regulators will approve it, since we do not see any antitrust problems.Previous larger mergers were also approved.“, the company notes.