Banco Sabadell (SAB) has rejected the offer that BBVA (BBVA) had made last week to merge the two entities, considering that it will generate more value on its own, the bank has informed the National Securities Market Commission (CNMV).
Sabadell’s board, which met on Monday to assess the offer, based its decision on the opinion that it could create greater shareholder value by remaining alone.
BBVA’s proposal was for a merger with Banco Sabadell (SAB): 100% in shares (no cash) and the exchange ratio was 1 BBVA share x 4.83 Sabadell shares (or 0.207 BBVA shares x 1 Sabadell share). This was a 30% premium over the close on Monday 29 April.
It now remains to be seen whether BBVA will launch an improved offer, launch a hostile takeover bid or retreat and call it a day.
