Renta 4| The National Securities Market Commission (CNMV) has announced that it has admitted Magyar Vagon’s takeover bid for Talgo (TLGO) as it considers that the prospectus and other documents submitted comply with the provisions.
At the same time, it indicates that this does not imply a pronouncement regarding the authorisation of the takeover bid, a circumstance on which it must pronounce in accordance with the deadlines and other requirements set out in article 17 of Royal Decree 1066/2007, of 27 July. This article states that the authorisation or refusal resolution must be adopted within twenty working days of receipt of the application. It should be recalled that the application was submitted on 4 April, so the deadline would correspond to the 2/3 of May next. However, the CNMV reports that the resulting acquisition is subject to the provisions of article 7 bis of Law 19/2003, of 4 July, on the legal regime governing capital movements and foreign economic transactions, i.e. approval of the transaction by the Council of Ministers. In short, the CNMV will not authorise the takeover bid until the operation has been approved by the Council of Ministers.
Assessment: We consider the news as a step in the normal process of a transaction of this type, but it does not provide additional information to what the market already knows about having to wait for the prior authorisation by the Council of Ministers.
