Banco Sabadell Drops as Largest Shareholder Gilinski Cuts Stake

(Bloomberg) -- Banco de Sabadell SA dropped in Madrid trading after Colombian investor Jaime Gilinski reduced his stake in Spain’s fifth-largest lender.

Gilinski sold 168.4 million shares, the equivalent of a 2.99 percent stake, sole bookrunner Deutsche Bank AG, said in a regulatory filing Tuesday. The investor raised 202 million euros ($213 million) selling the shares at 1.20 euros each, a discount to the 1.23-euro closing price on Monday.

Gilinski has been a among the largest shareholders in Banco Sabadell since the lender raised capital in 2013. He told Expansion in October 2014 that he held a 7.5 percent stake, expressing confidence in the bank’s management and in Spain. Gilinski now holds 2.04 percent, making him the second-largest individual shareholder after Winthrop Securities Ltd., data from Spain’s regulator CNMV shows.

Sabadell fell as much as 4.2 percent, leading declines in the benchmark STOXX 600 Banks Index, and was down 4 percent at 1.21 euros as of 9:56 a.m. The stock has dropped 25 percent this year, while the index lost 13 percent.

To contact the reporter on this story: Macarena Munoz in Madrid at mmunoz39@bloomberg.net. To contact the editors responsible for this story: Simone Meier at smeier@bloomberg.net, Ross Larsen