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BBVA shares rise after Sabadell rejects takeover proposal
By Stella
MADRID, May 7 (Reuters) – Shares in Spanish bank BBVA (BBVA.MC), opens new tab rose as much as 1.9% on Tuesday morning after Sabadell (SABE.MC), opens new tab rejected what it described as an unsolicited takeover proposal from BBVA.
At 0805 GMT, shares in BBVA, Spain’s second-biggest lender by market value, were up 1.5%, while those of number four lender Sabadell were down 1.7%.
On Monday, Sabadell said its board believed BBVA’s proposal significantly undervalued its potential and growth prospects. BBVA said it regretted Sabadell board’s decision, without giving any hint of its next move.
BBVA could now walk away, raise its offer, or launch a hostile takeover bid. A spokesperson declined to comment.
Spanish broker Alantra said it did not expect BBVA to improve its offer or go hostile.
“We rule out that BBVA will go hostile (…) given that the management will destroy its track record of financial discipline and that around 50% of Sabadell shareholders are retail investors, which would largely follow the board’s decision in any case,” it said.
Source: REUTER
