The Boards of Directors of the Spanish entities CAIXABANK and BANKIA have recently approved a merger plan, to be executed as a merger by absorption of BANKIA by CAIXABANK, which must be approved at the General Shareholders Meetings.

Explain (i) the main characteristics of the form of merger that has been approved by CAIXABANK and BANKIA,

(ii) the main reasons of such merger being adopted,

(iii) how does this merger add value to both preexistent entities,

(iv) whether do you think any financial distress can arise from this merger and what would happen in that case, and

(v) whether, in your opinion, there would have been any other mechanism to maximize both entities shareholders value different than the merger.