Under Spanish securities law, the accumulation of 30 percent of the shares of a listed company by any one shareholder forces that person or corporation to make a public offer for the remaining float. As of Friday, however, this requirement does not hold in the cases of shares acquired from financial institutions in the process of reorganization or those that have been assisted by the BdE's bailout fund, the FROB.
Seeing as Basel III accounting regulations are going to downgrade share holdings in the capital structure of banks, one can reasonably expect to see various financial institutions bring to market their very large participations in Spain's private sector. Aside from providing invaluable assistance to Florentino Pérez in his quest to take control of the management of energy giant Iberdrola, the change should be causing bottom fishers waiting for the bargains to surface to take pause. There will be bid from hyper-motivated parties previously excluded from the game in a lot of these cases.
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3 Comments:
Charles - completely unrelated to this article.
I read today that Ordoñez says 100 billion (100,000 millones) euros of real estate are probably high risk. How many properties is that? If we had to that the 750,000 empty homes that is estimated, we are looking at something pretty damn serious.
Any insight?
I believe the phrase that he used was 'potencialmente problemática'.
Keeping in mind that Ordoñez is playing a political game here and his figures are (without my making any claim as to whether they're high or low) a means to an end and are not to be trusted, why would you add the homes to the figure when they're already included?
The sum is 217 bn total exposure, of which 44 bn is equity-for-debt properties and the remainder constructor/promoter loans. That is what he extracts the 100 bn from.
Has your local been serving you up rancid octopus lately?
Ja! They probably have, as the situation seems rather fishy, no pun intended.
Even 44bn seems like an enourmous amount of properties.
I´ve learned that in Spain, when a govt official says probably or potentially, it means absolutely certain.
I have a feeling that taxpayers are going to be stuck with the bad debts of all these cajas, once they transform into banks.
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