BBVA Tweaks Terms of Sabadell Takeover Offer to Take Into Account Dividends

By Adria Calatayud

Spain's BBVA said it is adjusting the terms of its hostile takeover offer for smaller rival Banco de Sabadell to take into account dividends recently declared by both banks.

BBVA--officially known as Banco Bilbao Vizcaya Argentaria--said late Tuesday that it is now offering one of its own shares and 29 European cents in cash (32 U.S. cents) for every 5.0196 shares of Sabadell. The previous bid included one newly-issued BBVA share for every 4.83 Sabadell shares, without a cash component.

BBVA went hostile in May in its $12 billion-plus pursuit of Sabadell, a deal that would create one of the biggest lenders in the eurozone, after it encountered opposition from its smaller rival. At the time, BBVA said its offer valued Sabadell at 11.53 billion euros, or 2.12 euros a share, based on the average share price of the quarter prior to the announcement.

Last month, BBVA said the European Central Bank wouldn't oppose a Sabadell takeover, but the deal is still pending approval from Spanish regulators and Sabadell's shareholders. The Spanish government has said the transaction raises concerns.

The change in the offer seeks to maintain the terms equivalent to the initial bid after dividend payments made by both banks, BBVA said.

BBVA a week prior declared an interim dividend payment of 29 European cents a share, while Sabadell this week paid an interim dividend of 8 European cents a share.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

October 02, 2024 01:55 ET (05:55 GMT)

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