Banco Sabadell predicts BBVA takeover won’t happen

Cesar Gonzalez-Bueno, chief executive of Banco Sabadell, said there was little chance of a hostile takeover bid by its rival BBVA bank.

Speaking at the Foro Banca forum held in Madrid on September 16, Gonzalez-Bueno added that the proposed €12 billion deal had “practically derailed.”

Also present at the forum was Peio Belausteguigoitia, head of BBVA Spain, who said that the decision rested with Sabadell’s shareholders.

“In the end, they are the owners,” he maintained.

Gonzalez-Bueno also criticised BBVA for not providing enough information for a balanced decision.

“We aren’t seeing transparency for shareholders,” he said.  “We miss that.”

Sabadell chief executive argued that BBVA was not being clear about the cost involved should the takeover go ahead.

BBVA expects to save €300 million in staff costs and plans to close 300 branches, while sources with inside knowledge of the proposed deal have predicted that 4,000 jobs would be lost.