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BBVA‘s Improved Bid Stabilizes Sabadell & BBVA Shares; OPA Premium Rises to 3.16%
Madrid, Spain – Shares of Sabadell and BBVA have stabilized Tuesday following BBVA’s surprise decision to improve its takeover offer, with the premium for accepting the offer now standing at 3.16%, up from 1.56% at Friday’s close.sabadell is trading around 3.20 euros, while BBVA shares are nearly flat at approximately 15.97 euros each.
The revised exchange ratio is now one BBVA share for every 4.8376 Sabadell shares, a shift from the previous offer of 5.5483 Sabadell shares plus 70 cents in cash. This all-share exchange eliminates potential tax liabilities for Sabadell shareholders opting for the offer, removing the need to pay capital gains taxes.
Investment banks have not altered their valuations or recommendations in response to the improved offer. Bloomberg’s market consensus gives BBVA a target price of 16.42 euros (2.9% potential upside) and Sabadell a target of 3.35 euros (4.7% potential upside).
Analysts note the market had anticipated a price betterment, with the premium previously dipping as low as -10% before moderating to -5% last week and -8% on Friday. BBVA has stated it will not further improve the offer or extend the acceptance period. While the improvement is below the 10% rebound some analysts predicted, it also removes the fiscal burden for Sabadell shareholders.
