BBVA's hostile bid for rival bank in Spain enters final strait as deadline nears

BBVA's hostile takeover of Banco Sabadell is approaching a key deadline, with the offer's acceptance period set to close on 10 October. The revised bid, approved by Spain's regulator in late September, offers one BBVA share for every 4.8376 Sabadell shares - a 10% improvement for shareholders on the original terms.

Sabadell's board has firmly rejected the proposal, arguing it undervalues its bank and poses risks to shareholders. In response, the bank has increased its dividend to bolster support for remaining as an independent operator

However, the dynamic shifted when Mexican investor David Martínez, who owns 3.86% of Sabadell, confirmed he would accept BBVA's offer. BBVA now hopes more shareholders will follow, aiming to surpass the critical 50% acceptance threshold.

Final results will be published by 17 October, when it will be known if Sabadell will survive or not. The two brands would be required to remain separate for three to five years, under the government's takeover conditions.