Alphavalue/DIVACONS | “An unwanted headache for Prime Minister Pedro Sánchez”. This is how Bloomberg describes the government’s attempts to stop BBVA’s takeover bid for Banco Sabadell. According to the US media outlet, opposing the takeover “seemed like an obvious decision” when it was announced a year ago.
However, Bloomberg quotes sources close to Sánchez as saying that the president “is caught between a rock and a hard place, looking for a way out that will allow him to save face”.
The operation is particularly sensitive because of the opposition of the PSC, one of the strongest branches of the PSOE, especially since it governs in Catalonia, and Sumar, the government partner and the party of the second vice-president and Minister of Labour, Yolanda Diaz, who has warned that the acquisition could destroy 4,000 jobs.
BBVA: Add, Target Price €16.9/share.
Banco Sabadell: Buy, Target Price €3.54/share.
