BBVA Shares Surge as Sabadell Takeover Bid Fails
Madrid, Spain - BBVA shares climbed nearly 6% at the close of trading on the IBEX 35 today, rebounding sharply after its €3.0 billion takeover bid for Sabadell collapsed. The failed offer, announced Thursday, secured only 25.47% of Sabadell’s voting rights, falling far short of the minimum acceptance threshold. Concurrently, Sabadell shares plummeted approximately 9% during trading, ending the day down around 7 points.
The unsuccessful bid marks a significant setback for BBVA’s expansion plans in the Spanish market, but the bank has moved quickly to reassure investors. BBVA announced it will “instantly” resume and accelerate its shareholder remuneration plan,initiating a share repurchase program of nearly €1,000 million starting October 31st. The market reaction suggests investors are optimistic about BBVA’s ability to deploy capital elsewhere.
The failure of the takeover attempt follows a period of market uncertainty. Earlier this week,clients of Sabadell largely rejected the offer,with only 28% accepting BBVA’s terms. BBVA’s American Depositary Receipts (ADRs) closed Thursday on the New York Stock Exchange with a 6.63% increase, reaching a high of $19.99 after the bid’s outcome became known, before settling at $19.47.
Adding to market pressures, a broader decline in the European banking sector emerged following solvency concerns raised by two regional banks in the United States. Santander lost almost 4.5%,while BNP and ING fell nearly 4%,mirroring losses experienced on Wall Street. this contributed to widespread losses across European markets, with the German DAX and Milan Stock Exchange down over 2%, the French CAC almost 1.5%, and London losing 1.5%.The IBEX 35 also experienced losses.
