Alex Trelinski
SABADELL Bank shareholders have until Friday to accept an offer for their investments in a hostile takeover bid by BBVA.
Those who accept the invitation will get one BBVA share for every 4.8376 of Sabadell’s shares.
BBVA raised its offer by 10% on September 22, after the process started a fortnight earlier.
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The improved bid values a Sabadell share at €3.39- the highest figure in over 10 years.
It’s not known which way the wind will blow on the bid with BBVA understandably considering it a ‘unique opportunity’ and an ‘exceptionally attractive offer’.
Sabadell bosses say that the bank is being undervalued and appealed to shareholders to stay put.
Sabadell’s board of directors has twice advised its shareholders against accepting BBVA’s takeover bid.
The first time unanimously, while on the second occasion Mexican investor David Martínez, the largest individual shareholder with 3.86% of the bank’s capital, dropped out after BBVA improved its offer.
The result of the takeover bid will be revealed on October 17.
BBVA chairman, Carlos Torres, has predicted that he will get over 50% of Sabadell’s capital thanks to institutional investors including 30% of Sabadell’s capital that they already have.
Sabadell’s bosses say that 40% of the bank’s capital is owned by individual shareholders, who they have been wooing with increased dividends.
One of its largest shareholders, the Swiss insurer Zurich, with 5%, has already rejected the BBVA bid.
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