“It was not easy for the council to improve the price of the takeover bid for Sabadell because the offer was already very good”
The CEO of Banco Sabadell, César González-Bueno, assured in an interview with La Información Económica that BBVA had not been generous enough either with the commitments agreed with the National Commission for Markets and Competition (CNMC) or with the price and he blamed the delay in time.
I find it surprising that they blame us for a delay that we have not generated at all and we would have no interest in doing so. Quite the opposite. It should be said that the Competition decision to give the green light to the operation in ‘phase II’ is unprecedented in Spain and, furthermore, it was approved unanimously. As for the price, it is enormously attractive. Just look at the behavior of the Sabadell share on the stock market after the launch of this takeover bid, with a price that has doubled since then.
The market capitalization is slightly below the price on the table (3.39 euros per share). Shareholders can consolidate this historical value by exchanging their Sabadell securities, whose journey is exhausted, for those of BBVA, the most profitable and fastest growing entity in Europe. The union itself will allow them to benefit from additional advantages.
We estimate an increase in Earnings Per Share (EPS) 40% higher than what they would have if they continued as an independent entity. As you know, this indicator is decisive for the dividend per share. In short, neither in Competition, which has been made clear with its unanimous decision, nor in price, with the obvious attractiveness of the offer and the support not only of David Martínez, who is the one who made it public, but also of the institutional investors who are almost clear about it, illustrates well the benefits of this operation.
