Banks, Sabadell rejects BBVA's provide | EUROtoday

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The board of administrators of Banco Sabadell has rejected a merger proposal by BBVA for a 12 billion euro mixture. Sabadell informed the Spanish inventory market regulator.

“The board of directors believes that the proposal significantly underestimates the potential of Banco Sabadell and its prospects for autonomous growth,” the board said. “Furthermore, the recent substantial decline and volatility in the Bbva share price increases uncertainty about the value of the proposition,” he added.

On Wednesday, BBVA introduced it was providing an trade ratio of 1 newly issued BBVA share for each 4.83 Sabadell shares, a 30% premium to closing costs on April 29.

The mixture of the 2 banks would create a Spanish large able to competing with the nation's largest lender, Banco Santander. The mixed lender would have greater than 1 trillion euros in belongings, with a market capitalization of round 70 billion euros, equal to Santander's valuation.

The two lenders had already held short-term talks a few potential merger on the finish of 2020, earlier than negotiations stalled over the worth.