BBVA Sticks With Its Sabadell Takeover Bid Despite TSB Sale

(Bloomberg) – BBVA SA decided to continue the offer to take over for Banco Sabadell SA, although the investor supports the decision to sell the UK Unit TSB.

“After examining the decisions accepted by Sabadell’s shareholders by Sabadell’s shareholders about the sale of TSB by Sabadell’s shareholders,” he said on Monday. The proposal “remains in force”.

Sabadell organized a shareholder meeting to support the sale of TSB to Banco Santander Sa announced in July. This sales will result in an extraordinary dividend of about € 2.5 billion ($ 2.9 billion).

BBVA, the Spanish government, said that if the lender cannot integrate Sabadell for several years if the agreement occurs, it makes it difficult to achieve cost savings that make it valuable to buy potentially purchasing.

Onur Genc, the Chairman of the Executive Officer of the BBVA, has left the door open to move away from the agreement before.

BBVA, whose official name is Banco Bilbao Vizcaya Argentaria SA, made an unwanted offer for Sabadell in May last year, which was rapidly rejected by the acquiring target. The movement also led to political opposition, and the Spanish government argued that an agreement would raise competition problems.

Spain’s second largest lending, Sabadell’s 5,3456 usual shares for a new share and 0.70 € cash offered. He valued Sabadell for € 16.6 billion at prices on Monday compared to the market value of € 17.6 billion.

BBVA said he expected to start the acceptance period of the transfer proposal in early September. A combination of two banks would create a new giant in the country. BBVA is the second largest bank in Spain’s assets and Sabadell fourth largest bank.

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