News Formal

Breakingviews - BBVA’s Turkish M&A bump pleases all parties

  • 📰 Breakingviews
  • ⏱ Reading Time:
  • 20 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 51%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

Banco Bilbao Vizcaya Argentaria Chairman Carlos Torres Vila is paying up to get what he wants in Turkey. But a higher offer for Garanti BBVA still makes financial sense. The 32 billion euro Spanish bank on Monday raised its bid for the half of the Turkish lender it doesn’t already own by 23% to 15 lira per share. The country’s bank stocks have soared since BBVA made the original offer in November; local rivals Yapi Kredi and Isbank are up almost 60%. That made the premium of roughly 15% over Garanti’s undisturbed price seem stingy.

are up almost 60%. That made the premium of roughly 15% over Garanti’s undisturbed price seem stingy.

Investors think the bump is sufficient: Garanti shares were trading a tad below the increased offer price on Monday morning. And the lira’s 40% slide since mid-November means the new price is still 11% cheaper in euro terms. BBVA is paying 0.65 times Garanti BBVA’s estimated tangible book value for 2022, up from 0.53 times previously. But the real prize is ending an inefficient status quo

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 470. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Breakingviews - Fallen casino kings have advice for BlackstoneThe rise and fall of two casino magnates offer lessons for Blackstone as it bids A$8.9 billion ($6.5 billion) to take charge of disgraced Australian gambling group Crown Resorts . Its founder James Packer set a mostly negative example. Elements of Packer’s former business partner Lawrence Ho are worth copying.
Source: Breakingviews - 🏆 470. / 51 Read more »