Banc Sabadell board unanimously rejects BBVA takeover bid

The board of directors of Banc Sabadell has unanimously rejected BBVA's takeover bid.

The Catalan bank considers the current offer "worse" than the initial one, arguing that it "destroys" shareholder value.

The board, chaired by Josep Oliu, stated that the Basque bank's proposal is based on "unrealistic assumptions" and carries "significant execution risks."

Sabadell also argued that BBVA itself demonstrates a "lack of confidence" in the deal, as it is prepared to move forward with only 30% of the shares.

"This offer was dead on arrival, and only one thing remains: for the shareholders to bury it," Oliu said.

The president of the Catalan bank also warned that shareholders who exchange their shares would "lose money."

The Sabadell further criticized the "uncertainty" the process could create for shareholders, emphasizing that remaining independent provides a "predictable and low-risk" path forward.

“The BBVA takeover bid fundamentally undervalues Sabadell and its future prospects,” the Catalan bank said in a statement sent to Spain’s financial market regulator.

According to Sabadell, the synergies from the BBVA offer would take more than seven years to materialize, whereas BBVA has projected them to be realized in four years.

The board also argued that shareholders would receive a stake 16% lower than initially proposed.

The Association of Minority Shareholders of Sabadell has also backed the decision of the board of directors.

In a statement, the organization said the takeover bid "destroys value and goes against the interests of shareholders."

Banc Sabadell shareholders have until October 7 to decide on the takeover bid, although BBVA could still raise the offer price. The final decision is expected on October 14.