Spanish bank BBVA seeks authorisation of hostile takeover bid for Sabadell

By Jerry  Published On May 27, 2024
MADRID, May 24 (Reuters) – Spanish bank BBVA (BBVA.MC), opens new tab on Friday asked stock market supervisor CNMV to authorise its 12.23-billion-euro ($13.29 billion) hostile takeover offer for smaller rival Sabadell (SABE.MC), opens new tab, a potential tie-up of lenders that Madrid opposes.
The filing with the CNMV formally kicks off the regulatory process for BBVA’s bid and is expected to take several months. The deal also requires the green light from the European Central Bank.
Sabadell’s board rejected BBVA’s initial takeover proposal, saying it believed BBVA’s proposal significantly undervalued the potential of Sabadell and its growth prospects.
Last week, Sabadell’s CEO Cesar Gonzalez-Bueno said that the bidder had underestimated the deal’s negative effect on capital reserves and overestimated cost savings.
A union of the country’s second- and fourth-largest banks – following a failed similar attempt in 2020 – would create a lender with over 1 trillion euros in total assets and mark the latest consolidation in Spain’s banking sector.
BBVA offered this month one newly-issued BBVA share for every 4.83 Sabadell shares, a premium of 30% over April 29 closing prices. That premium was around 8% on Friday, valuing Sabadell at about 11.2 billion euros, according to Reuters calculations.
Source: REUTER

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