Overview

• Spain’s market regulator approved BBVA’s improved offer and reopened the tender period, giving Sabadell shareholders until 10 October to decide.
• The bid now offers 1 BBVA share for every 4.8376 Sabadell shares, replacing the prior mix of stock plus €0.70 in cash and lifting the value by about 10%.
• If acceptances end between 30% and 50% and BBVA lowers its threshold to 30%, Spanish rules would require a subsequent mandatory offer within a month, typically in cash.
• Based on current prices, a second bid is estimated to cost between €8.5 billion and €11.91 billion depending on first-round take-up.
• Sabadell’s CEO urged investors to wait for a potential second bid, BBVA says it has no plan to launch one while its prospectus leaves the door open and the CNMV can set the eventual price if it detects anomalies.