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4w ago

Banco Sabadell Leverages Strategic Plan to Heighten Pressure on BBVA’s Bid

Sabadell’s record €6.3 billion payout plan has sent its shares surging, prompting analysts to boost valuations.

El consejero delegado de Banco Sabadell, César González-Bueno, y el director financiero, Sergio Palavecino
Image
La consejera delegada de Bankinter, Gloria Ortiz, presenta los resultados de la entidad en el ejercicio de 2024, en la sede central de Bankinter, a 23 de enero de 2025, en Madrid (España).
El consejero delegado del Banc Sabadell, César Gónzalez-Bueno, en una imagen de archivo

Overview

  • On July 24, Sabadell unveiled its 2025–2027 plan offering €6.3 billion in dividends and share buybacks to steer investors away from BBVA’s hostile bid
  • The roadmap includes €3.8 billion in ordinary dividends and a €2.5 billion extraordinary cash payout contingent on shareholder approval of the TSB sale to Santander
  • Sabadell’s shares have climbed 112% since April 2024, closing at €2.94 ahead of the plan presentation and trading above BBVA’s offer price
  • Analysts from JB Capital, Exane and others have raised target prices toward €4, creating a growing negative premium that pressures BBVA to improve or withdraw its bid
  • Spain’s Ministry of Economy has barred any merger between systemically important banks for three years, keeping BBVA’s takeover attempt on hold