A head start in Spanish equities (22/10/24) TLGO BAnks BBVA SAB SCYR Utilities REP LDA OHLA IAG Hotels GDP Taxes Ibex

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Stories ranked by order of importance

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Talgo?(+/-) Talgo negotiates with Sidenor, the acquisition of a relevant stake or of its totality, with the current core shareholders wanting at least €5/share, but also opens the door to other EU investors (Expansion p3)

(+/-) Talgo and Sidenor initiate conversations with Criteria while awaiting events (Cinco Dias p3)

(+/=) Sidenor will offer its assets as guarantee in order to be able to finance a bid for 100% of Talgo (OK Diario)

Banks?(+/=) The Governor of Bank of Spain says that he does not think unelected officials should opine on taxes but that it would be desirable to change the design of the tax on banks in order to make more neutral, for instance by deducting provisions so as not to harm activities such as SME lending, o applying the tax also to the smaller banks (Expansion p13)

BBVA/Sabadell? (-/=) The Governor of Bank of Spain says that the Government would need to request a non-binding report from Bank of Spain before authorising a BBVA/Sabadell merger (Expansion p14)

(=) BBVA states that Sabadell will not find a better bid, while the Catalonia regional government trusts that the bid will fail and Pimec calls for further studies (Expansion p18)

Sacyr?(-/=) The Italian Veneto region has won an arbitration decision in relation to the Pedemontana-Veneta motorway by which it reduces the payment for availability to SIS (Sacyr 49%) from €194m to €154m due to the payment starting in January 2024 rather than 2020 (Expansión p3)

Utilities/Repsol? (=) Large energy companies carry out an unprecedented lobbying effort to try to stop the continuity of the tax which costs them €1.3bn/year due to the extra profits (Expansion p6)

(=) Oil companies will paralise industrial investments if the energy tax is extended (El Economista p19)

Linea Directa? (+/=) 9m24 net profit €40m vs loss of €12.5m on premiums of €757.6m +3.5% (Expansion p16)

OHLA?(=) The Amodio brothers want to add €50m in convertible bonds on top of the planned €150m capital increase (Expansion p4)

IAG/Hotels?? (+/=) Airline prolong the boom by offering 6% more seats this winter (Expansion p4)

GDP??(+/-) The Funcas think tank revises up by 0.5pp its estimate of GDP growth in 2024 to 3% (2.1% in 2025) due to the strength of tourism/exports and public consumption, but warns that the budget deficit will be 3.1% in 2024 (3% in 2025) requiring adjustments vs. the 2.5% target (Expansion p23)

Taxes?(=) The head of the opposition PP party calls for a lower tax reform and not force imposition of inheritance tax on the regions (El Economista p40)

Ibex??(-) The Ibex index falls 0.7% to 11,841, with investors awaiting corporate results (Expansion p19)

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