Amicable takeover of the Swiss stock exchange from BME

Six groups, financial service provider operating the Zurich Stock Exchange, the main Swiss Stock Exchange, has launched a Public Offering (OPA) of BME shares for a total amount of 2,842.92 million euros. With an operating price of 34 euros per share. It should be remembered that an OPA, a public offer to acquire shares or other securities, is a commercial operation in which one or more companies make an offer to purchase shares to all the shareholders of a company.

The Public Offer of Acquisition may or may not be friendly, but in this circumstance it has been the first of the scenarios. And for a price that meets investors' expectations by being well below the listed price at that time. The consequence has not taken long to reach the equity markets and the shares of Bolsas y Mercados de España have appreciated. about 35% since it is a very beneficial operation for their interests.

In any of the cases, a long time had passed since an operation of these characteristics had taken place on the Spanish Stock Exchange and for this reason it has drawn attention that this dynamic has been carried out. But fundamentally because of its amount, which in a way has surprised the different agents in the equity markets. Now the only thing that remains is that this Public Offering of Acquisition takes place in the next few days. But fundamentally the investment strategies available at the moment by small and medium investors.

Takeover bid to BME for 34 euros

The price that has been launched for the Public Offering of Acquisition (OPA) of BME shares has been at the closing in the 34 euros per share. It is a monetary amount that, before the operation is carried out, will be very interesting for investors since its price is well below this amount, around 30 euros. Even though, after their rise in the Stock Market, the shares of Bolsas y Mercados de España have been slightly above 35 euros. Currently, it is necessary to analyze the different strategies that investors have with the value of the continuous market of Spanish equities.

Because there is no doubt that you must differentiate between investors who already had their positions in the security and those who are outside the financial markets. Because they will have totally different investment strategies. With divergences in their way of operating before a movement that in fact is very unknown to a large part of stock market users. And that they can make the movements profitable based on their personal interests in the face of what may happen in the coming weeks. Where there may even be a new takeover bid by another foreign company.

The original price has been exceeded.

Investors who had positioned themselves in the value would already have profitability from the operation of this Public Offering of Acquisition (OPA). Therefore they would have two options from now on, where the first thing would be to undo their positions in the value and enjoy the capital gains obtained. It would definitely be the most reasonable action to take advantage of this unexpected stock market operation. But they have a second option, which is to wait for another company to increase the price of the takeover bid, even though in this circumstance there is a risk that the operation will not be executed.

On the other hand, if it is out of value it is already very risky to take positions to generate some other profit in them. It would be at the expense of improving the Public Acquisition Offer (OPA), which is simple at the moment. But if not, of course it cannot be considered an interesting operation because it is very complex for the price of the shares to exceed the current levels in the quotation. And doing so would have very small profit margins. Therefore, it is not a good idea to have access to this listed company at current price levels.

Go to the OPA

A third option available to the small and medium investors who are in the action is to go or not to this Public Offer of Acquisition. From this point of view, it is an operation that can be very interesting for your personal interests since they could get a return on this stock market movement. between 20% and 40% based on the price of the purchase made prior to this transaction in the stock market. An interest that they could not think of at any time that they could achieve with this listed company. Otherwise, they can wait a little longer to accelerate their profitability and see if their shares can surpass the 36 euro levels.

Another aspect that must be assessed in this procedure is that BME is a security that is listed on the national continuous market and that was immersed in a downward trend very accused. After having been trading for many years in the selective index of Spanish equities, the Ibex 35. Even though it is important to note that its level of capitalization has never been very high, on the contrary it has been one of the bets on the stock market. with less liquidity. Making the adjustment in the entry and exit prices of the security very complex.

Credits for these investments

Some financial entities provide financing to those clients who want to go public and at a precise moment, due to any situation, do not have the necessary liquidity to deal with their purchase operation. In some cases through exclusive credits to operate in the Continuous Market and, in others, through a line of loans. attend the takeover bid, always for amounts less than 50,000 euros and with a maximum repayment term of 5 years.