The battle between BBVA and Sabadell begins. After 10 pm this Thursday, Banc Sabadell responded to the hostile takeover bid launched early in the morning by warning the CNMV of an alleged violation of the takeover law. According to the entity born in Catalonia, the documentation delivered by BBVA in a conference with analysts and the comments made therein, “violate article 32.1 of Royal Decree 1066/2007, of July 27, on the regime of public acquisition offers. of securities and, in general, introduce incomplete data that can affect the market.”
In a brief statement, Sabadell has detailed that “it has informed the National Securities Market Commission of this circumstance in order that the market has complete and transparent information and an orderly and correct process is guaranteed.”
Financial sources explain that some of the comments that the BBVA management team have conveyed to analysts do not comply with what the Spanish standard on purchase offers establishes. In the aforementioned meeting with analysts held by videoconference, details were given about the takeover bid, the price, contacts with certain Sabadell shareholders, communications with regulators and the steps to follow from now on.
The takeover law in Spain is very strict since it establishes what can be communicated and what cannot once the purchase process has started. Furthermore, since it is a hostile takeover bid that is rejected by the Sabadell board of directors, it is to be expected that the two parties (especially the purchased party) analyze in detail compliance with what the law establishes.
The success of the takeover depends on a minimum of 50.01% of Sabadell shareholders accepting the purchase of their shares by BBVA. For this reason, both parties look closely at the entire process.
The takeover bid announced this morning is exactly the same one that BBVA already put on the table and that was rejected by the Sabadell board of directors on Monday.
