BBVA is scheduled to launch 14.9 billion euros hostile to SABADell on Monday

Written by Jesus Agodo and Emma Payne

BBVA of Madrid (Reuters) -on Friday that his hostile offer, which is 14.9 billion dollars ($ 17.44 billion) for Sabadel on Monday, while the target bank president said the offer was worse than the previous offer.

BBVA said it is now expecting the merger to generate 900 million euros from cost savings, from a preliminary estimate of 850 million euros, but added that it is now expected that these common benefits will be achieved in 2029 after the Spanish government prevented the full integration of banks for at least three years.

Before that, the bank expects to achieve 235 million euros of cost savings by 2028. Among the lenders will create the second largest Spanish bank in terms of local assets with more than one trillion euros, behind Caixabank.

SABADELL shareholders until October 7 will have to provide their shares, according to the expected calendar, with the results of the expected offer by October 14.

“We already have a deal and run it. It is a great offer with a lot of value creation capabilities. Let’s accomplish it,” BBVA CEO told ONUR GENC to analysts and investors in a phone call.

The Sabadell Council owns 10 working days from September 8 to issue its official opinion on the show. On Friday, she said that the board of directors would conduct a new in -depth analysis and a logical evaluation, but its president, Josepe Olyo, said that the offer was worse than the original offer that his board of directors rejected in 2024.

At that time, BBVA surprised the market when he made a preliminary offer, which turned into a hostile after the council avoided.

BBVA aims to secure the majority of voting rights or 49.3 % of Sabadell shares.

Although the bank received a mandate from the US Securities and Exchange Committee, as the bank’s shares are also trading, to reduce the admission threshold to 30 %, BBVA still intends to secure at least 50 % of the voting rights.

“We have a condition that stipulates that if we do not reach 50 % (voting rights), the acquisition will not go ahead,” said President Carlos Torres. “We want to be in control and we have no intention to change that.”

The shareholders in Sabadil are widely scattered. The 20 largest shareholders are international founders and none of them have more than 7 %, according to LSEG data.

A minority association in Sabadel said on Friday that BBVA swap does not pay for the capabilities of Sabadel and that BBVA is seeking to get it at a deal price.