Businesses consider it 'real disgrace' if BBVA takeover bid for Banc Sabadell goes through

The Catalan Foment del Treball business association president, Josep Sánchez Llibre, considers it a "real disgrace from both political and financial points of view" if Banc Sabadell disappears due to the success of the BBVA takeover bid.

During a speech at the New Economy Forum on Tuesday morning, Sánchez Llibre said he hopes the buyout offer will not surpass the required 30%.

If the takeover bid goes through, he said that a "very important player" of Catalan small and medium-sized companies would disappear, a company that has been next to the territory's production.

He added that the Basque bank, BBVA, has been very opaque in terms of his takeover offer, as it improved the bid by 10% after denying it would do so for a long time.

For the business association president, the offer is just "a joke" as it wants to "sell pipe dreams."

"We hope Banc Sabadell shareholders are conscious that BBVA's proposed value is not the same expected value on the stock market," he added.

The takeover process continues until October 10, the deadline for Banc Sabadell shareholders to accept BBVA's proposal. Spain's market regulator is expected to announce the result on October 17.

Zurich against vs largest minority shareholder in favor

On Tuesday morning, the insurance company, Zurich, owner of almost 5% of Banc Sabadell's shares, denied accepting BBVA's takeover offer for the Catalan bank, as reported by Bloomberg and later confirmed by the Catalan News Agency (ACN).

One of the insurance company spokespersons said, "Zurich does not have any intention of selling its shares," as the group considers that the current offer is "not an appealing proposal for Sabadell shareholders."

The company's position is completely opposed to the decision taken by the largest minority shareholder, and member of the Banc Sabadell board, David Martínez. He owns 3.68% and said he is backing the takeover to "maximize the investment's return."

He believes the Catalan bank is "valued accordingly" and denied any agreement with the Basque bank. While at the beginning Martínez, a Mexican investor, voted against the takeover offer, he backed the proposal once BBVA improved it, despite the board managers saying that it "fundamentally undervalues" the bank.

Between 60 and 70%

On Sunday, BBVA's president, Carlos Torres, said that the Basque bank is expecting to acquire "between 60 and 70%" of Banc Sabadell's shares.

"The offer is unbeatable and very appealing," Torres said.

Meanwhile, Banc Sabadell's president, Josep Oliu, said that it is "almost impossible" for BBVA to obtain 50% of the required shares, and the bank's general director, César González-Bueno said it was "extraordinarily difficult" to get 30%.