Banco Sabadell rejects proposal to take over BBVA for 13 billion dollars

The board of directors of Banco Sabadell declined the acquisition bid put up by BBVA last week, as stated in a statement filed with the Spanish Securities and Exchange Commission (CNMV).

The board of Sabadell, which had already blocked BBVA’s initial proposal to merge the bank in 2020, believes the unsolicited bid «significantly undervalues» the bank and its future development potential as a stand-alone business.

The board of directors of Spanish bank Sabadell met Monday to discuss a takeover bid for shares of its biggest rival, BBVA, valued at about 12 billion euros ($12.9 billion) when it was announced last week, two sources familiar with the matter said.

Sabadell added to its reasons for ruling out the takeover the volatility of the shares of the bank chaired by Carlos Torres in recent days, creating “additional uncertainty” about the proposal, which offered to exchange one BBVA share for every 4.83 Sabadell shares.