Aurelio Medel (5 Días) | The Catalan bank entangles the government and the community’s establishment with its commercial importance and now says it’s a matter of price.
The hostile takeover bid launched by BBVA for Sabadell is a case study that could address various aspects, such as the actions of governments and regulators, boards of directors, or the different communication strategies of both entities. But when you analyze the details of the arguments surrounding both banks, what becomes clear is that Sabadell’s approach is based on emotion, while BBVA’s discourse is built on rationality. One bases its narrative on feelings, and the other on numbers. Both attitudes are likely related to the profiles of the top executives: those of the Catalan bank are more passionate, and those of the Basque one are more methodical, in line with their McKinsey past.
Perhaps these differences in structure and style explain why they ended up in a hostile takeover bid and have been at odds for years. Now comes the moment of truth: when the shareholders decide, you start to see changes in attitude. The most notable has been that of the chairman of Banco Sabadell, who has gone off-script, at least partially, this week. After months of appealing to emotions, Josep Oliu was photographed in Expansión clinging to his wallet: “With a 30% premium, the board would seriously consider what to do.” Entering that discussion means falling into BBVA’s narrative, the one about numbers.
This change in discourse is highly relevant. The Sabadell board, and its chairman in particular, who represents the bank’s founding families, has won the complicity of the central and regional governments, as well as all business organizations in Catalonia, under the premise that if the Catalan bank disappears into the jaws of BBVA, competition will be seriously weakened, especially in Catalonia and in the SME segment.
This argument may or may not seem solid, but it’s the one Oliu has used, knowing that he wasn’t going to get the support of governments, political parties, and business organizations just so he could make more money selling his shares. Therefore, now that he has shown his hand—that what he cares about is the price—it would be interesting to know the look on the faces of all those he tangled up with emotional premises.
The methodical duo, Torres-Genç, have worn down BBVA a lot in this operation and should have a plan B worked out for themselves and the bank. The stoics, Oliu and González-Bueno, their counterparts at Sabadell, have it better. If they win, they’ll be the heroes who stopped the giant. If they lose, their magnificent contracts will kick in, and they’ll retire very comfortably.
