Core Insights - BBVA has launched 24/7 cryptocurrency trading for retail clients, becoming the first major bank in Spain to integrate Bitcoin and Ether into its mobile banking platform [1][2] - The launch is a significant application of the EU's MiCA framework, which is expected to influence other European banks that are cautious about retail crypto services [1][4] Company Developments - Customers can buy, sell, and custody Bitcoin and Ether directly through BBVA's mobile app, with trades executed using the same infrastructure as foreign exchange [2] - The integration aims to provide a familiar and regulated trading environment for users, reflecting the rising demand from everyday investors [2][3] Technological Support - The rollout is supported by SGX FX, which provides pricing, aggregation, and risk management technology, allowing banks to add crypto services without a complete system overhaul [3] Industry Implications - BBVA's early adoption may pressure other European banks to follow suit, as MiCA clarifies rules for digital assets [4] - Other banks, such as KBC and Deutsche Bank, have explored blockchain but have not yet launched 24/7 crypto trading [4] Client Advisory - BBVA Switzerland has advised wealthy clients to consider a 3%–7% allocation in cryptocurrencies [5]

Core Viewpoint - The potential acquisition of Sabadell by BBVA is positioned as a highly attractive opportunity for Sabadell shareholders, with expectations of surpassing a 50% acceptance threshold due to favorable exchange terms and projected earnings growth [1][2][3]. Group 1: Acquisition Details - BBVA expresses confidence in surpassing the 50% acceptance threshold for the acquisition of Sabadell, citing the attractiveness of the offer [2][4]. - The share price of Sabadell has more than doubled during the tender process, reaching historical highs, indicating strong market interest [3]. - BBVA anticipates that the merger will result in earnings per share for Sabadell shareholders being over 40% higher than if they remained standalone [3][19]. Group 2: Shareholder Considerations - BBVA has the legal option to waive the 50% threshold condition if necessary, although it does not intend to do so [5][6]. - There is a concern among some Sabadell shareholders regarding a promised special dividend of €2.5 billion, but BBVA argues that dividends do not create additional value for shareholders [15][18]. - BBVA emphasizes that the focus should be on future earnings generation rather than immediate cash distributions [18][19]. Group 3: Institutional Support - BBVA reports overwhelming support from institutional investors for the acquisition, including significant backing from David Martinez, the largest individual shareholder of Sabadell [28][32]. - The acceptance levels from institutional investors are expected to be high, although formal data will only be available at the end of the tender process [34][36]. Group 4: Future Projections - BBVA has set ambitious targets for 2028, including a 22% return on tangible equity and a total of €48 billion in net profit over the next four years, which will support future distributions to shareholders [21][22]. - The acquisition is framed as a strategic move to enhance growth and profitability, positioning BBVA as the fastest-growing and most profitable bank in Europe [4][19].

Group 1 - The Sabadell Board has rejected BBVA's €17 billion takeover offer, citing various risks including fiscal impact, shareholder dilution, and labor force risks [1][2][3] - BBVA's current offer is less favorable than a previous offer made 16 months ago, with a decrease in the percentage of combined holdings from 16.2% to 15.3% [2] - BBVA's stock has underperformed compared to other European stocks, which diminishes the attractiveness of the offer for Sabadell shareholders [3][6] Group 2 - The acceptance level for BBVA's offer is currently below 1%, with significant resistance from long-term shareholders who are unlikely to tender their shares [10][11] - There is speculation that BBVA may lower the acceptance threshold from 50% to 30%, which could complicate the acquisition process [8][11] - If BBVA proceeds with a second offer, it is expected to be equal to or higher than the first offer, creating uncertainty around the potential price [12][13] Group 3 - The potential need for BBVA to raise up to €12 billion in cash to facilitate the acquisition poses significant financial risks [14][15] - BBVA's capital generation capabilities are under scrutiny, especially in light of their need to maintain dividends while managing acquisition costs [16][42] - Sabadell has demonstrated strong capital generation and profitability, with a return on tangible equity projected to rise to 16% [34][35] Group 4 - The strategic investor base of Sabadell includes 5% strategic partners, 20% passive investors, and 35% long-only hedge funds, indicating a diverse shareholder composition [19][20][21] - The long-term outlook for Sabadell's management autonomy and client relationships remains stable, even if BBVA gains control [29][30] - Sabadell's commitment to returning 40% of its market cap to shareholders over the next two and a half years reflects confidence in its financial health [34][35][45]

Takeover Bid Rejection & Rationale - Sabadell Board rejected BBVA's €17 billion revised takeover offer, leaving the decision to shareholders [1] - The offer is considered underpriced compared to 16 months prior, offering only 153% of the combined holding versus the previous 162% [2] - BBVA's stock performance has been the worst among European stocks, diminishing the value of their offer currency [3] - Achieving a 50% acceptance rate in the initial offer is deemed impossible, potentially leading to a second offer with increased risks [4] Stock Performance & Market Dynamics - BBVA's stock price is under pressure, not solely due to the acquisition, but also due to underperformance in Mexican markets, down 16% while Spanish stocks are up 80-90% [6][7] - Over 40% of shareholders are against the deal, with acceptance levels currently below 1% [9][10] - Lowering the acceptance threshold to 30% is a possibility for BBVA, potentially leading to a second takeover offer [11][12] Potential Second Takeover Offer & Financial Implications - The chairman indicated that a second takeover offer would be equal to or superior to the first, incentivizing shareholders to wait [13] - A second offer could require BBVA to disburse up to €12 billion in cash if shareholders tender at a fixed price [14][15] - BBVA might need to reduce dividends and issue shares to cover the costs, despite having reserves [16] Shareholder Structure & Investor Sentiment - 5% of shareholders are strategic partners, 20% are passive investors, and 35% are long-only/hedge funds with divided opinions on the deal's long-term value [19][20][21] - Institutional investors are hesitant due to potential overhang on BBVA shares from the need to raise or use €12 billion in cash [22] - One institutional investor, David Martinez, has chosen to take the tender offer, but he is considered a unique, distressed investor [22][23] Banco Sabadell's Future & Strategy - Banco Sabadell emphasizes its autonomy of management and independence for the next 3-5 years, with brand continuity, no branch closures, and no layoffs [29][30] - The bank is a "capital generation machine" with a return on tangible equity expected to reach 16% [34] - Banco Sabadell plans to return 40% of the market cap value per share to shareholders in the next 25 years [34] - The bank's interim dividend is higher than BBVA's, paying out 7% cents per share with a commitment to offer another 7% [35] - Banco Sabadell is growing and gaining market share while maintaining a core Q1 above 13%, higher than BBVA's committed 12% [37][38]

Group 1 - The article promotes a subscription service called "The Dividend Dogcatcher," which offers insights into dividend stocks [1] - Fredrik Arnold hosts a live video show called "Underdog Daily Dividend Show," where he highlights potential portfolio candidates [1] - The article encourages audience engagement by inviting comments on favorite or curious stock tickers for future reports [1]

Core Viewpoint - The board of Spanish lender Sabadell has advised its shareholders to reject BBVA's improved hostile takeover bid, asserting that the offer still significantly undervalues the bank [1] Company Summary - Sabadell's board believes that the current takeover bid from BBVA does not reflect the true value of the bank, indicating a strong stance against the acquisition attempt [1]

Core Viewpoint - BBVA announced a record interim dividend for shareholders participating in its hostile takeover bid for Sabadell, linked to the 2025 results [1] Group 1 - BBVA is actively pursuing a hostile takeover of Sabadell [1] - Shareholders of both BBVA and Sabadell will benefit from the interim dividend [1] - The dividend is unprecedented in size, indicating BBVA's commitment to the acquisition [1]

The Spanish securities regulator CNMV gives the green light for the raised $20 billion offer that BBVA has made for rival Banco Sabadell https://t.co/hku0uaOdUS ...

Group 1 - The Spanish stock market supervisor has authorized BBVA's improved bid for Sabadell, which amounts to 17 billion euros (approximately $20 billion) [1] - The bid for Sabadell was announced on Monday, indicating a strategic move by BBVA to strengthen its position in the banking sector [1] - This acquisition reflects ongoing consolidation trends within the banking industry in Spain [1]

Group 1 - BBVA has revised its acquisition offer for Banco Sabadell, increasing it by 10% to one new BBVA share for every 4.8376 Banco Sabadell shares [1] - The new offer values Banco Sabadell shares at €3.39 per share, marking the highest valuation in over a decade, and has increased by 60% since April 2024, from €12.2 billion to €19.5 billion [2] - BBVA CEO Onur Genç highlighted that Banco Sabadell shareholders accepting the offer will benefit from a bank with higher growth potential, achieving 41% higher earnings per share [3] Group 2 - The approval of the improved offer by the Spanish securities commission CNMV is pending, after which the take-up period will recommence [4] - BBVA Chair Carlos Torres Vila emphasized that the improved offer presents a historic valuation and price, allowing shareholders to participate in the value generated by the integration [4] - Banco Sabadell's board previously advised shareholders to reject BBVA's initial offer, citing undervaluation concerns, and a minimum three-year waiting period for consolidation has been stipulated by the Spanish government [5]