Wall Street Journal forced to correct error in BBVA–Sabadell valuation coverage

The takeover battle between Spain’s BBVA and Banco Sabadell has been closely scrutinised by investors, regulators and retail shareholders alike. Yet a small numerical error in reporting by the Wall Street Journal shows how even minor inaccuracies can mislead markets during such high-stakes deals.

The paper initially reported that BBVA’s previous offer terms valued Sabadell shares at €3.14 based on Friday’s closing prices. In fact, the correct figure was €3.08. The correction was later issued at the foot of the article.

At first glance, a six-cent difference might appear trivial. But in a transaction worth €17 billion and hinging on delicate calculations of premiums, valuations and exchange ratios, such details matter. Analysts and investors assess fairness of bids based on marginal improvements in share-for-share offers, with fractions of a euro shaping shareholder sentiment.

The BBVA–Sabadell takeover has already generated volatility in both banks’ stock prices and prompted rare government intervention, with Madrid imposing a three-year freeze on full legal integration. In this environment, the misreporting of even a modest valuation shift risks fuelling further uncertainty about whether the offer undervalues Sabadell or adequately rewards retail investors.

Economic reporting on mergers requires exactitude not just because of reputational stakes for the companies involved, but also because investors make real-time decisions on the back of published data. An error of this kind, left uncorrected, could distort perceptions of BBVA’s willingness to sweeten its terms and Sabadell’s bargaining position.

The correction underscores a broader point: when billions are at play, financial journalism cannot afford imprecision. Market confidence depends on clarity, especially in Europe’s increasingly consolidated banking sector where even “small” numbers can change the narrative of who holds the upper hand.