BME: A Potential Takeover Target That Yields 10%

Bolsas y Mercados Espanoles (BME) (BOLYY.PK) is the exchange operator of all stock markets and financial systems in Spain. BME has been a listed company since July 2006 and an IBEX 35 Index constituent since July 2007. BME's stock price has been under pressure over the last few years, as the Spanish stock market, leading to a very high dividend yield of close to 10%. Given the financial distress occurring in Spain, the company can be a clear takeover target within an industry that is going through a global consolidation process. (Click to enlarge) Source: YahooFinance The company makes money basically by volume, which means that every time an investor buys or sell a Spanish stock, through its Spanish listing, BME receive a fee. More than 40% of its revenues are derived from the equity business, 25% from clearing and settlement services, 10% from market data, and the remaining from... Read more