The general director of BBVA in Spain, Peio belasteguigoitiainsisted this Wednesday that “it makes no sense to wait for a hypothetical second takeover bid” of his bank over Sabadell because this new offer would have “no advantage” over the current one. It is, he maintained in an interview on 'ACN', a “very unlikely and uncertain” scenario and the second purchase offer would have “no advantage in price or in terms of taxation.”
The possibility of a second takeover bid is marking the final stretch of the first, whose acceptance period for the shareholders of the Catalan entity expires at midnight next friday to Saturday. If the first takeover bid obtains an acceptance above 30% of Sabadell's share capital but does not reach 50%, BBVA has the legal option of lowering the minimum acceptance threshold with which it would settle from 50% to 30%. But this would force it to launch a second takeover bid for the rest of the capital within the period of one month and in cash what the takeover law qualifies as an “equitable price.” Sabadell encourages the idea that it could be more attractive than the first to try to make the current one fail.
Belausteguigoitiain this sense, has assured that he is convinced that the first takeover bid will exceed “loosely” the 50% threshold, since the “offer is very good, and the project is very attractive.” Thus, it expects to achieve “massive support” from active institutional shareholders, which represent 30% of the share capital of the Sabadell, while passive institutional investors (20% of capital) are expected to largely “replicate” the rest and also accept the offer.
As for retail shareholders, who represent just over 40% of the capital, the banker has estimated that it is “logical” that many are “dragged” by the “very relevant” step taken by David Martínez, Mexican financier and director of Sabadell, who has announced that will go to the takeover bid with its close to 4% of the bank. Although there is a “sentimental, emotional component” when deciding, there is also a “rational” one, he argued.
“We have clearly seen an acceleration, an increase in acceptances in recent days, largely due to the decision taken by the most important and significant individual shareholder,” he stated. On the other hand, it has downplayed the rejection of the takeover bid by Zurich, which has about 5% of Sabadell and is a partner of this bank in the insurance business. “Their decision is completely biased by the potential loss of this business,” he said.
Given that he is confident of exceeding 50%, Belausteguigoitia has maintained that it is “absurd” wait for an “uncertain” second takeover bid, as Sabadell has encouraged. “If it exceeds 50% There will, logically, be no second offer.and in the hypothetical case that there was, the price will be the same,” he argued. Waiting, he continued, will only make “the process longer” and “delay the advantages” of accepting the current offer.
Subscribe to continue reading