Overview

• On July 15, BBVA filed an appeal with the Spanish Supreme Court to annul a Government condition barring legal and operational integration of Banco Sabadell for three years, extendable by two.
• The bank says the restriction would postpone €850 million of annual cost savings crucial to the economics of its takeover offer.
• Spain’s Government defends its actions under a national law in force since 2007 and cites reports from the Abogacía del Estado as legal justification.
• The European Commission has opened infringement proceedings against Spain to challenge national rules that allow such executive hurdles but is not seeking the immediate removal of the non-fusion clause.
• BBVA is pressing ahead with its hostile takeover after Sabadell shareholders approved the TSB sale and a €2.5 billion special dividend, with an acceptance period set for early September.