THE BBVA hostile takeover bid for Sabadell Bank is over after a massive rejection was announced late on Thursday night.
Just 25.47% of Sabadell shareholders backed the BBVA offer, which needed 50% to be successful.
In a surprise to observers, BBVA failed to even get 30% support which would have allowed it to come back with a more generous second bid.
READ MORE:
The matter is now at an end and is seen as a big blow to the BBVA chairman Carlos Torres, who unsuccessfully tried to merge with Sabadell in 2020.
After another failed attempt in April 2024, Torres then launched the hostile bid in May 2024.
Carlos Torres told Bloomberg TV that doesn’t intend to resign over his failure to get Sabadell.
“I will be heading the bank as long as shareholders and the board want me to be doing so, ”he said.
“I will continue, there is no doubt about that,” he added.
Torres also sought to show that the failed bid may not be bad news since it removes ‘all restrictions we had on distributions, and our shareholders will see the immediate benefit.’
Sabadell Bank chairman, Josep Oliu, said on Friday that he spoke with Torres.
“The truth is that I don’t know which of the two of us was more surprised,” he commented.
“We didn’t expect this. The result has been very clear.”
Deputy Prime Minister and Minister of Labour, Yolanda Diaz, said: “The fact the takeover is not going ahead is good news for the country”.
“The bid was a bad move with negative effects on employment.”
The association of financial users in Spain, Asufin, described the failed bid as a ‘victory for consumers’ as it will preserve bank branches and jobs.
Click here to read more Business & Finance News from The Olive Press.
The Sabadell board made it very clear to their shareholders why they should not accept the BBVA bid. Now they have to not disappoint them
Let’s see!