Sabadell calls for measures to prevent market manipulation during the takeover bid.

MadridBanco Sabadell has asked the National Securities Market Commission (CNMV) to adopt "as a precautionary measure" a "public criterion" that "all shareholders of the financial institution who wish to make public their intentions regarding the BBVA takeover bid must comply with," with the aim, it says, "of avoiding potential market manipulation." With this request, Sabadell materializes the challenge it posed this Monday Its CEO, César González-Bueno, to shareholders such as David Martínez, who with 3.89% of the share capital has already announced that he will participate in the takeover bid: "Whoever participates in the takeover bid, let them do so irrevocably," the executive said yesterday.

In a letter sent this Tuesday to the Spanish stock market regulator, Banc Sabadell requests that all these investors be required to detail their stake in the bank's shares and to "firmly and irrevocably" guarantee that they will participate in the takeover bid for 100% of the company's share capital. The Valle del Cauca-based bank also requests that they be required to disclose any "existing additional interest," such as debt instruments. It also demands that the regulator "immediately correct" the actions of any retail shareholder who has stated they will participate in the takeover bid so that they provide all the requested information. The ultimate goal is for all these shareholders who publicly announce their intention to accept BBVA's offer to "ensure that they comply with their communication" and do not later back down.

"If a hare appears saying that he will participate in the takeover bid, let him do so irrevocably so that we can be certain that he is not trying to drag down the market and end up with a second takeover bid," González-Bueno reflected yesterday during an intervention at the financial meeting he organizes. Expansion with KPMG. The underlying reason the executive issued this kind of challenge is in case a shareholder, for example, an institutional investor, initially says they will participate in BBVA's takeover bid to attract other shareholders, but then backs out due to the possibility of a second takeover bid, with a better price and therefore a higher profit. This could happen if only between 30% and 50% of Sabadell's capital accepts BBVA's offer.

The acceptance period for BBVA's hostile takeover bid for Sabadell ends this Friday, October 10th. This means that Sabadell shareholders who want to participate in the takeover have until that day to decide.