The Sanahujas spent more than a year fighting for control of Metrovacesa, before agreeing in February 2007 to split the company in two, giving control of its French unit, Gecina SA, to Joaquin Rivero, the unit’s chief executive.
HSBC provided a guarantee to the Sanahujas in March to help fund the acquisition of Metrovacesa shares, according to the prospectus of the takeover, and in April, the Sanahujas raised their shareholding to 81 percent from about 71 percent, purchasing shares at 83.21 euros. The guarantee matured in August. The shares closed today at 51 Euros in Madrid.
Two years ago, there were already signs that the real estate industry was heading for trouble, even before the unforeseen “disastrous financial and economic situation we are in now,” said Francisco Salvador, a director at Venture Finanzas SA, a Madrid-based broker. “For the Sanahujas to continue taking on debt to boost their stake and invest in projects as big as the HSBC tower was a serious strategic mistake.”
