Banco Sabadell has rejected a €12bn takeover proposal from its larger rival BBVA, the Spanish lender said on Monday, stating the offer “significantly undervalues” Banco Sabadell’s potential and its growth prospects, and describing the offer as unsolicited.
BBVA had surprised the market last week with its bid, touting the merger’s potential to form “one of Europe’s largest and most robust financial entities”. However, Sabadell’s refusal now leaves BBVA facing the decision of whether to pursue a more contentious hostile bid, a strategy unfamiliar in Spain’s dealmaking landscape.
