They refused to participate in an auction so did not increase their offer, they walked away. They will now bank over $500 million in profits from selling their stake to the other bidder, although, as they have owned a stake in BNL for quite a few years, it is not clear how they have calculated the profit figure.See article:
BBVA's management deserve high praise, and the bank an upward rerating, for having shown the discipline to walk away and established a no-lose strategy.
Well done!
OAM
BBVA, the Spanish bank, on Friday abandoned its €8.3bn ($10bn) all-share bid for BNL of Italy, ending a bloody four-month battle against rival shareholder groups and the country’s banking authorities.
In a statement on Friday to Spain’s stock market regulator, Spain’s second-largest financial group said it had given up hope of securing 50 per cent of the target, hours before its offer was due to close.
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