June 23, 2024

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De Guindos refuses to talk about the takeover offer made by BBVA and Sabadell, and says that the European Central Bank’s decision will depend on “financial solvency” issues.

De Guindos refuses to talk about the takeover offer made by BBVA and Sabadell, and says that the European Central Bank’s decision will depend on “financial solvency” issues.

European Central Bank Vice President Luis de Guindos. Diego Radamés/Europe Press

the Obsession Provided by BBVA About Banco Sabadell The matter is on hold until the National Securities Market Commission (CNMV), the European Central Bank (ECB) and the National Markets and Competition Commission (CNMC) authorize the operation. At this time, none of the three institutions have commented on its decision.

An example of this silence was provided on Thursday by the Vice-President of the European Central Bank, Luis de Guindos, who avoided making statements about whether or not the European bank had authorized the hostile takeover offer. He limited himself to saying that the ECB’s assessment of any type of interbank transaction would be based on Prudential and solvency issues.

He pointed out, “We will conduct an evaluation of any type of transaction that involves a merger or purchase of bank shares, but this evaluation will be based on prudential issues and financial solvency.” Specifically, regarding the hostile takeover affecting the two Spanish banks, he stressed that “We do not comment on transactions that have not been completed“, when asked about this process at the press conference that followed the European Central Bank’s decision to cut interest rates by 0.25 points to 4.25%.

Last Friday, May 24, the Basque Bank requested permission to launch a hostile takeover bid from the National Securities Market Commission (CNMV), which will review it. Information provided to shareholders Complies with current legislation. He did the same on Monday with the National Commission for Markets and Competition (CNMC), which will review it Concentration level This results in the entity ensuring competition in the banking sector.

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Finally, he asked the ECB for “permission”, which would be the first to speak after analyzing the situation Sustainability and feasibility The process to ensure that the resulting banking group can comply with all prudential requirements in the coming years. To do this, the ECB will analyze the business model of the entity that will result from the process.

BBVA has launched a hostile bid for Sabadell with shares in mind

BBVA offers Sabadell shareholders who attend the takeover offer an exchange One newly issued BBVA share for every 4.83 shares held in the Catalan bankwhich represents A 30% installment Regarding the closure of the two entities on April 29; 42% on the weighted average of last month’s prices; Or 50% of the weighted average prices for the last three months. Moreover, Banco Sabadell shareholders will have Participation rate 16% for the resulting entity, benefiting from the value generated by the process.

Suggest it Analysts are not convinced. This is the situation Antonio Castillo, Analyst at iBroker Global Markets. In his opinion, “Banco Sabadell shareholders are not interested in accepting the offer under the current circumstances. Personally, if I were a Sabadell shareholder, which I am neither, nor are BBVA, I will accept cash payment only And not for an amount less than 2.25 euros per share“.