Sabadell accuses BBVA of violating takeover laws
Continue war between BBVA and Banco Sabadell as a result of the former’s attempt to merge both banks. The last chapter is devoted to the complaint of a Catalan bank, which accuses its Biscay counterpart of violating the law on takeovers.
Everything happens after Hostile public takeover proposal put forward by bank chaired by Carlos Torres, that is, for his intention to take over 100% of the shares of Sabadell. The operation that faced unanimous rejection of the Catalan banking council. This complaint is sent in writing to the National Securities Market Commission (CNMV), which documentation published by BBVA was not “included in advertising”.
In the same time, They justify Sabadell on the grounds that it “violates Article 32.1 Royal Decree 1066/2007 of 27 July., on the regime of public offering for the acquisition of securities.” On the other hand, in the complaint, Sabadell points out that BBVA’s takeover offer presented “incomplete data that could affect the market.” Another issue that BBVA is accused of is “failure to comply with the duty of passivity,” although Banco Vizcaya denies this.
The above article of the Royal Decree includes the following. “From the moment of public announcement of the public procurement proposal referred to in Article 16 until the submission of the proposal under the conditions provided for in Article 17: the offeror, members of its administrative and management bodies, its controlling shareholders, its consultantspeople with whom I acted in concert, and others who interfered with the operation They will refrain from disseminating or publishing by any means any data or information that was not included in the pre-offer announcement.».
Initial offer
BBVA’s initial proposalApril 30 consisted of an offer to exchange newly issued BBVA shares. for every 4.83 shares of Sabadell at a premium of 30%. from the price at which Sabadell was trading on Monday, April 29. Both companies previously had a bid in 2020, but it ultimately fell through due to disagreements over the price.
The new giant will displace every fifth euro in the Spanish banking sector.
If the takeover bid is completed, A new banking giant will be created, which will become the second largest bank in Spain by assets. and thanks to its market value it will become the third largest bank by capitalization in Europe. The resulting bank will have 22% of its deposits and 22% of its loans originated in Spain.
One out of every five euros that move in this sector in our country will be moved by the organization that, together with Banco Sabadell, will make up BBVA. The Catalan enterprise is now in a much better financial position than in 2020 and this agreement, if implemented, would have great influence on the Spanish and international markets.
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