Consolidation wave hit Spanish banks
Nicolas Suiffet September 18, 2020 5:41 PM
CaixaBank and Bankia, the two Spanish banks, announced that their boards of directors have approved the operation, to be executed as a merger by absorption of Bankia by CaixaBank
CaixaBank and Bankia, the two Spanish banks, announced that their boards of directors have approved the operation, to be executed as a merger by absorption of Bankia by CaixaBank. The banks said: "The agreement consists of an exchange ratio of 0.6845 new CaixaBank ordinary shares for every Bankia share and includes a 20% premium over the exchange ratio at the closing of 3rd September." The implied deal valued would be 3.8 billion euros, according to Bloomberg.
From a technical point of view, Caixabank shares remain stuck in trading range since June 2020. A key support base has formed at 1.89E. The daily Relative Strength Index (RSI, 14) has broken above a declining trend line and is not overbought. It reinforces the probability of an upward breakout of the range. A push above 2.12E would validate a bullish signal and would open a path to see 2.20E and 2.33E. Only a break below 1.89E would negate the bullish view.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.