Sabadell accuses BBVA of violating the takeover rule with its supply | Economy | EUROtoday

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Total struggle between Sabadell and BBVA: on the identical day that the financial institution chaired by Carlos Torres has offered a hostile takeover bid to purchase Banco Sabadell, it has knowledgeable the National Securities Market Commission that the info supplied by the providing entity violates the regime for such a operations and introduces incomplete documentation that will have an effect on the market.

The textual content offered to the markets supervisor signifies that the documentation that BBVA has revealed has not been “incorporated into the announcement, as well as the information provided at the meeting violates article 32.1 of Royal Decree 1066/2007, of July 27, on the “regime of public offers for the acquisition of securities”. In basic, they add, “they introduce incomplete data that can affect the market.” This circumstance has been transferred to the CNMV “in order that the market has complete and transparent information and an orderly and correct process is guaranteed,” the assertion provides. To which he provides: “BBVA has published a presentation in English about the operation, a press release and has called on analysts and investors to a presentation that took place at 9.30 in the morning, in which a Question Time”.

Furthermore, according to various sources in the sector, BBVA would not have respected the duty of passivity when coming into contact with investors of the entity it wants to acquire, a point that is denied by the bank chaired by Carlos Torres.

In this way, the escalation in the open war between both banking groups increases. In fact, the accusation of the entity chaired by Josep Oliu occurs a few hours after BBVA presented a hostile takeover bid for 100% of its shares after the rejection that the Catalan board caused the friendly merger proposal. communicated last week. The offer maintains the price and conditions – a payment in BBVA shares that means valuing it at around 11.6 billion euros, according to the stock market closing this Thursday – and its future is uncertain. Furthermore, the Government has come out against the operation, the unions have warned about the destruction of jobs and the response of the shareholders, very fragmented, is unknown.

The union of BBVA, the second Spanish bank by assets, with Sabadell, the fourth, would sharpen the concentration in the financial sector in Spain, with more than 70% of the market in the hands of the big three. For Carlos Torres, president of BBVA, it represents all or nothing: it is the second attempt at Sabadell, after the unsuccessful negotiations in 2020, and now he launches a new battle against executives and the Government.

For its part, the bank chaired by Josep Oliu considers that the offer made, at the rate of one BBVA title for every 4.83 Sabadell shares, “significantly undervalues” the entity's venture and its “growth prospects.” The entity disgraced the truth that the supply didn’t comprise a money portion, which made the Catalan financial institution's valuation rely upon the bidder's worth. Given BBVA's refusal to enhance the sum and go away the choice to the shareholders, Banco Sabadell has determined to counterattack by suggesting that this hostile operation contravenes market guidelines.

In this defense, the words used during the press conference of the president of BBVA, Carlos Torres, will be used, although official Sabadell sources do not confirm this point. The disagreements arise from a specific statement by the president of BBVA. “Some shareholders have told us that they value the operation positively,” said Torres, although he has not quantified what percentage these investors represent. Furthermore, he has hinted that these contacts were prior to the presentation of the OPA. That is, one could use this issue to defend that he has not breached the duty of passivity. That is, it has not proactively contacted investors of the entity it intends to acquire.

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