BBVA Increases Bid for Sabadell in Hostile Takeover Attempt

Spanish banking giant BBVA has announced an improved takeover proposal for Banco Sabadell, increasing its offer by 10 percent to €3.39 per share. This revised bid values Sabadell at approximately €19.5 billion ($22.9 billion). The move comes amid BBVA's continued efforts to convince Sabadell shareholders before the October 7 deadline to accept the hostile takeover.

The announcement follows Sabadell's firm refusal of BBVA's initial offer, which the smaller bank's board criticized for undervaluing the institution and urged shareholders to reject. BBVA, Spain's second-largest bank with considerable operations in Latin America and Turkey, confirmed it will not extend the offer deadline or further enhance the bid.

Carlos Torres Vila, BBVA's chairman, emphasized the significance of the new proposal, stating, "With this improved offer, we are putting an extraordinary proposal in the hands of Banco Sabadell shareholders."

Sabadell's CEO, Cesar Gonzalez-Bueno, dismissed the updated offer on a radio interview, describing it as "very weak" and "even worse," highlighting the bank's improved market valuation since the bid's announcement. The leadership remains steadfast in preserving the bank's independence, underscoring the uncertainty surrounding the bid's outcome given Sabadell’s dispersed ownership, where no single investor controls more than seven percent.

The acquisition bid launched by BBVA in May 2024 aims to forge a major European banking competitor on par with Santander, BNP Paribas, and HSBC. The tender offer officially opened on September 8 and will close on October 7, leaving Sabadell shareholders to decide the future of the fourth-largest bank in Spain.