Sabadell shareholders are faced with a crucial decision after BBVA launched a hostile takeover bid for the bank. The offer values Sabadell at almost 11.6 billion euros, but tensions between the two banks have been escalating. The exchange ratio offered by BBVA undervalues Sabadell’s growth prospects, according to the bank’s insiders.
BBVA’s president, Carlos Torres, believes that the merger will create an entity with greater scale and positive impact in the market. However, the board of Sabadell has expressed its rejection of the bid, stating that it undervalues the bank. The Government also rejects the operation, citing concerns about banking concentration and territorial cohesion.
The decision to accept the offer lies with the shareholders of Sabadell, who must weigh whether the bank is worth more alone or with the help of BBVA. With no controlling shareholder, large investment funds hold most of Sabadell’s shares. Shareholders will have to consider this offer carefully before making a decision.
The takeover bid by BBVA is unprecedented in the Spanish market, which traditionally repels hostile bids. The process will involve obtaining authorizations from regulatory bodies and the Ministry of Economy. BBVA must now send all documentation of the offer to the CNMV, kicking off a process that could take more than six months to resolve.
This move by BBVA marks a significant development in the banking sector and will have far-reaching implications for both BBVA and Sabadell in
