BBVA Chairman on Sabadell Bid, Second Offer Possibility

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].