BBVA, Sabadell clash heats up ahead of takeover deadline
Source: AFP
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Tensions mounted ahead of the closing on Friday of Spanish banking giant BBVA's hostile takeover bid for smaller national rival Sabadell whose uncertain outcome will be announced on October 17.
The proposed deal aims to create a European banking powerhouse capable of competing with industry heavyweights such as Santander, BNP Paribas and HSBC.
BBVA, Spain's second-largest bank which boasts a big footprint in Latin America and Turkey, launched the bid for Sabadell, the country's fourth-largest lender, in September.
Shareholders have until Friday at 23:59 (2159 GMT) to accept or reject the offer whose outcome remains uncertain due to the large number of small Sabadell shareholders.
No investor holds more than seven percent of the bank, founded in 1881 near Barcelona.
BBVA chief executive Onur Genc expressed confidence in the bid in an interview published Wednesday in business daily Expansion, saying the bank would "clearly exceed the 50 percent acceptance" threshold needed to gain control of Sabadell.
His optimism is bolstered by support from David Martinez, a Mexican businessman and Sabadell's largest individual shareholder, who has publicly backed the takeover.
However, Sabadell is pushing back. Its chief executive Cesar Gonzalez-Bueno told the paper it was "impossible" for BBVA to acquire more than 50 percent of the capital.
His stance is reinforced by Zurich Insurance, Sabadell's second-largest shareholder, which told AFP on Tuesday it would not participate in the bid, saying "the current offer does not provide an attractive proposition".
The escalating battle has played out publicly but remains regulated by Spain's securities watchdog, the CNMV.
Both banks lodged complaints with the regulator last week over alleged "bad practices", and Sabadell on Tuesday requested that the CNMV ensure there was no market manipulation.
The CNMV said it "expected" to announce the result on October 17 in a Wednesday statement issued "amid contradictory information" and "mere speculation" about the offer.
BBVA has already navigated approvals for its offer from the European Central Bank and Spain's competition authority, and overcame opposition from the left-wing Spanish government, which expressed concerns about reduced competition.
However it imposed strict conditions, requiring a three-year freeze on merging the operations of the two lenders to safeguard market competition.
Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now!
Source: AFP
