Banco Sabadell boasts strong resistance from its shareholders to the hostile takeover bid by BBVA. The entity has published this Tuesday before the National Securities Market Commission (CNMV), that acceptances among shareholders who have deposited their securities in the bank reach 1.1% of the capital. According to his vision, this makes it difficult for the Basque entity to reach 50% of the capital in the takeover bid.
Sabadell has reported that the weight of shareholders with their securities deposited in the entity represents 30.8% of the total capital. And that, of them, 2.8% have said yes to the offer.
On the other side of the coin, this means that 29.7% of Sabadell’s capital has said no to the offer. And the role of index funds, which weigh 20% and usually replicate the indices, therefore will try to predict the final acceptance of the offer to say whether they attend or not. It is estimated that a maximum of 10% will attend.
Therefore, the level of ‘noes’ reaches at least 44%. This makes it difficult for BBVA to achieve its objective, which is for acceptance to exceed 50%. To do this, it would need unanimous support from active funds (35% of the capital), as well as from retailers that do not have their shares in Sabadell, which represent 20% of this type of investor and around 9% of the capital.
On the contrary, BBVA has significant support. This is the Mexican investor and director, David Martínez, who has opposed the board’s rejection of the takeover bid and has decided to accept the offer with his nearly 4%.
