Sabadell reveals that no client with shares has participated in the takeover bid.

MadridThe two top executives of Banc Sabadell have once again raised their swords to defend the financial institution's solo path. In fact, they have been doing so for some time now—since BBVA launched its hostile takeover bid 16 months ago. The novelty this Friday is that for the first time they did so together at a public luncheon in Madrid organized by the Nueva Economía Forum. Until now, although they had attended events like this together, only one of them was the speaker.

The event took place just days before the end of the acceptance period for BBVA's takeover bid. The Four Seasons Hotel Madrid was the setting for over an hour of arguments from both executives on why Sabadell shareholders stand to lose more than they gain by accepting BBVA's offer. And so far, according to González-Bueno himself, they appear to be convincing. "If you want to know how many [individual customers] have already participated in the takeover bid, all you have to do is pick up a bottle of 0.0% beer," said the bank's CEO. He gave an example of the number of individual customers who have Sabadell shares deposited at the same bank and who would have already participated in the takeover bid, meaning they would have sold their shares. González-Bueno explained that individuals represent 80 percent of shareholders and hold almost half of the bank's capital.

Furthermore, the bank's CEO has asserted that BBVA's offer has not generated "any interest" among institutional shareholders. González-Bueno said this after a few weeks marked by meetings with investors in London and New York. "The response is unanimous [...]: at these prices [BBVA's offer] is of no interest," he said.

But, beyond the arguments, Oliu and González-Bueno have taken the opportunity to lead by example. Both the chairman and the CEO of the Valles-based bank have emphasized that they will not participate in the takeover bid, something that the rest of the board of directors will not do either, Oliu explained. "The prices at which a shareholder sells their shares depend on their expectations [of the bank's growth], [...] and my expectations for Sabadell are extremely high. So high that they will never reach them," Oliu asserted.

Will the offer improve or not?

During the breakfast, Sabadell also challenged BBVA to make it clear that it will not improve its offer, as BBVA chairman Carlos Torres has reiterated. This is one of the hypotheses the market is speculating on, and in Sabadell's eyes, the bank chaired by Torres should put in writing its intention not to do so in order to ward off uncertainty.

"It's legitimate to wait until the last minute to raise the price in a hostile takeover bid. What's questionable is assuring that you won't do it," González-Bueno argued. "That creates confusion. It's one thing to leave the option open, and another to close it off so radically," he added. Finally, the bank's CEO didn't hesitate to charm shareholders and clients with a promising future when the takeover is over: "Imagine what we'll do [at Sabadell] when we no longer have to focus on the takeover bid and can enjoy the ride," he said.