Renta 4 | BBVA (BBVA) has confirmed in a significant event, following the Extraordinary General Shareholders’ Meeting held by Sabadell at which the sale of TSB and the distribution of an extraordinary dividend of 50 cents were approved, that it has decided to press ahead with its takeover bid for Sabadell.
Assessment: We believe that this decision to go ahead is in line with expectations.
Currently, the exchange ratio puts the premium at -6%, down from -14% before BBVA’s results were announced. We continue to believe that if BBVA really wants to have a chance of the offer going through, it should improve the offer to at least close the gap in the exchange ratio.
We do not rule out that this decision may support BBVA and Sabadell’s share prices today, in the latter case because the market may increase the possibility of a potential price improvement.
BBVA. HOLD. P.O. €14.14/share
SABADELL. OVERWEIGHT. P.O. €3.29/share
