BBVA's Sabadell Takeover Bid Faces Uncertainty Amid Mixed Shareholder Responses
BBVA SA has made a takeover bid for Banco Sabadell SA, but responses from major shareholders have been mixed. While David Martínez, the largest individual shareholder, is open to tendering his shares, Zurich Insurance Group, the second-largest shareholder, has refused the offer, deeming it less attractive than Sabadell's standalone prospects.
BBVA needs more than 50% acceptance to succeed, but Sabadell's chairman and CEO consider this unlikely. Fitch Ratings expects BBVA to maintain its CET1 ratio even if it acquires a 30%-50% stake in Sabadell and launches a second all-cash bid. The tender offer ends on Friday, with shareholders having until October 10 to accept the offer.
David Martínez, Sabadell's second-biggest shareholder, initially rejected BBVA's proposal but later accepted after the price was increased. Sabadell's CEO doubts BBVA will reach the 30% threshold and believes a second takeover bid could force BBVA to raise as much as €4 billion in capital. If BBVA gets more than 30% but less than 50%, it could launch a second offer for the remaining shares, with a minimum price equal to the first offer. Sabadell's board has rejected BBVA's improved takeover bid with all votes, except one, in favor. One of Sabadell's biggest investors, Zurich Insurance Group AG, will reject BBVA's bid for Sabadell. Sabadell has called on Spain's securities markets supervisor to impose more disclosure requirements on some investors who accept BBVA's offer.
BBVA's takeover bid for Sabadell faces uncertainty with mixed responses from major shareholders. While some, like David Martínez, are open to the offer, others, such as Zurich Insurance Group, have rejected it. BBVA needs more than 50% acceptance to succeed, and Sabadell's CEO doubts this will happen. The outcome of the tender offer, ending on Friday, remains to be seen.
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