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Sabadell sells toxic assets

Spanish economy 4th October 2024

“We do think Sabadell shareholders value having part of the proposed compensation paid in cash, as protection in the face of potential volatility in BBVA’s share price”

Jefferies | BBVA’s Adjusted Offer to Sabadell: Cash Component Was a Given. The adjusted offer made by BBVA to SAB, including the newly added cash component, comes as no surprise, as it is well in line with the adjustment terms described in the initial offer. We note a delay in the timeline of the deal would mechanically increase the cash proportion of the offer, which would have to reflect all…

bbva sabadell

In Spain 4th October 2024

Banco Sabadell claims that BBVA has worsened the conditions of its takeover bid after making adjustments to the share exchange

On Tuesday, October 1, BBVA announced a change in the share exchange it was offering for Sabadell in the takeover bid it has proposed to acquire the Catalan entity: it changed from offering one new BBVA share for 4.83 Sabadell shares to offering one share of the bank for 5.0196 shares of the Catalan bank and a cash payment of 0.29 euros per share. According to BBVA, this change aligns…

pmi sector manufacturero marzo

Spanish economy 4th October 2024

Spain shows muscle in eurozone and within periphery: only country where manufacturing demand shows no clear signs of weakness

While manufacturing PMIs slump to 45pt (48.8p) in the EZ, with Germany at 42.4 and France at 43.9, Spain unexpectedly rebounds to May highs: up to 53 (50.5 in August). Italy starts to feel the German cold given its industrial links and falls back (48.3, 49.4p). Time will tell how much European slippage the Spanish economy can withstand but for the time being, this geography, and beta (tier 2 names),…

telefonica letrero entrada 1024x648 1

In Spain 3rd October 2024

Telefónica and Inveready compete to purchase Avatel for around €700 million

The sale of Avatel, a key operator in medium-sized towns, is moving forward with fewer candidates on the table. The entry of a majority partner in the company, which originated on the Costa del Sol, is currently being decided between Telefónica and the Spanish management firm Inveready. The number of contenders has decreased following the withdrawal of three international funds that were invited to participate in the process: PAI Partners,…

employment office

In Spain 3rd October 2024

Number of unemployed rises by 3,170 in September, below historical average

Bankinter : The number of unemployed increased by 3,170 people in September (after going up 21,884 in August and with 12,000 expected). The number of unemployed now stands at 2.58M (up 0.1% month-on-month and down 5.4% year-on-year). Seasonally adjusted Social Security enrolled increased to 21.2m (22,220 workers, up 0.1% month-on-month and 2.3% year-on-year). Opinion of Bankinter’s analysis team: The number of unemployed increased below expectations in September, and below its…

bancos 4grandes

In Spain, Spanish economy 2nd October 2024

Bank of Spain sets up countercyclical capital buffer to strengthen solvency, shareholder remuneration policy not affected

Bankinter : The Bank of Spain (BdE) is to establish a countercyclical capital buffer (CCB) to strengthen the solvency of the sector. The CCB will be 0.5% of Risk Weighted Assets (RWAs) from 4Q 2024 and may reach 1.0% in 4Q 2025 (standard level for systemic risks). Bankinter’s research team’s opinion: Increasing capital requirements is not good news for the sector, but the impact is limited because: (1) The BdE…

bbva sabadell

In Spain 1st October 2024

UBS, advisor to BBVA, announces during takeover bid that it holds more than 3% of Sabadell

UBS, which is acting as an advisor to BBVA in the takeover bid for Banco Sabadell, has declared to the National Securities Market Commission (CNMV) that it holds a 3.15% stake in the capital, mostly through various financial instruments. However, according to the newspaper La Información, this seems to be just the tip of the iceberg. UBS is reportedly in a position to add more than 7% of Sabadell’s shares…

bolsa reloj espana 2

In Spain 30th September 2024

High probability of a positive fourth quarter: Ibex 35’s 7% cushion

Renta 4: We continue with positive statistics, this time suggesting a positive fourth quarter, as we can see in the two charts below. The first chart looks at the occasions when a momentum indicator registers certain positive parameters, noting that 2, 6 and 12 months later there have been positive performances by the S&P500. The second shows that when the S&P500 has not recorded monthly declines of more than 5%…

Sacyr2

In Spain 30th September 2024

Sacyr awarded concession of Atacama and Antofagasta airports

The General Directorate of Concessions of the Ministry of Public Works of Chile has awarded the concession for the Northern Airport Network of Chile, which includes the airports of Atacama and Antofagasta, to the consortium made up of Sacyr Concessiones (70%) and Cointer (30%). The concession involves an investment of approximately €260 million for the expansion, improvement, and maintenance of the two airport infrastructures, which will enhance service quality and…

Spain has highest proportion of contracts of 6 months or less

In Spain 30th September 2024

Spain Leads Long-Term Unemployment in EU: 585,000 Unemployed for 4 Years

In Spain, one in five unemployed individuals has been searching for a job for more than four years without success. This means that 585,000 people have been unable to find employment for over four years, placing the country, alongside Italy, at the forefront of long-term unemployment in Europe.According to data from the Quarterly Labor Market Observatory for the second quarter of the year, prepared by Fedea and BBVA, the incidence…