BARCELONA, Sept 17 (Askume) – Spanish bank BBVA (BBVA.MC) has no intention of raising its offer for smaller rival Sabadell (SABE.MC) , its chairman Carlos Torres said on Tuesday.
Torres said at a university alumni event in Barcelona that the current offer is “very attractive” and would reassure Sabadell shareholders.
In April, BBVA launched a €12 billion ($13.4 billion) takeover bid for all Sabadell shares, but hostility emerged in May. The plan was opposed by the Spanish government but approved by the European Central Bank on Sept. 5.
Under Spanish law, the government cannot block a takeover bid, but it has the final say on whether to allow the two entities to merge. The takeover must also be authorized by Spain’s stock market regulator and its antitrust regulator, the CNMC.
Torres does not expect to face opposition from China Nonferrous Metals Group. “We don’t think this business will create any competition issues,” he said.
Sabadell’s vice president, Pedro Fontana, who was also in the audience, declined to discuss Torres’ comments.
On Monday, Sabadell chief Cesar Gonzalez-Bueno said the chances of the acquisition succeeding were “very low”.
Asked why BBVA shares have fallen since the acquisition began while Sabadell shares have risen, Torres said the two stocks are closely linked. “The offer we made is very accretive to Banco Sabadell’s (share price),” he said.
