SABADEL BBVA BANK | Josep Oliu: “BBVA’s proposal is unsatisfactory neither for Sabadell nor for its shareholders”
Bank President Sabadell, Josep Oliu, stated that the takeover bid proposed by BBVA “not satisfactory In an internal statement sent to bank employees this Monday evening, after the board decided to reject the purchase offer, he confirmed that the enterprise he leads is “strong, with a future. “This is a great creature.”
“We are very confident in the bank’s progress and in plans that are being implemented“, Oliu continued. And he called on board members to “continue with the same commitment and professionalism” they have demonstrated in recent days. He also believes that both the bank’s business and geographic regions will respond to this. with illusion to this strategy of Sabadell himself.
And the bank’s general director spoke in the same spirit: Cesar Gonzalez-Buenowho insisted that “together we will make an organization bigger, more powerful and more profitable in future”. He welcomed the “support of the board of directors for the future project of Banco Sabadell” and considered that this confidence is “an incentive for further improvement, if possible even greater.”
These are statements that come hours after BBVA rejected the proposal, considering it “undesirable, indicative and conditional.” The proposal that BBVA made public included share exchange What does it mean to value Sabadell at this price? 30% more above its share price last Monday and give its shareholders 16% new business as a result (despite providing 22.7% of assets).
He also opened up to give him vice presidency director of his competitor (intended, as expected, for his president, Josep Oliu), among other details. Sabadell believes that with this proposal, a bank of Basque origin “significantly underestimates” your project and prospects for its growth.
BBVA’s response
It took Sabadrel Bank almost a week to decide that the offer was not enough. And now the ball is in the court of BBVA, which has already regretted that the board of its competitor “rejected such an attractive offer“Three scenarios could emerge from this. The first is that the second largest bank in the country give up your goal -in which the second attempt; the first was in 2020 – to absorb a subject of Catalan origin.
The second possibility is that BBVA launches Hostile takeover on the terms already proposed. However, such a move would have few precedents in the banking sector and even fewer success stories. Thirdly, perhaps by unilaterally improving the proposal, we will try continue to convince to Sabadell.