Spanish banking giant BBVA has launched a takeover bid for Sabadell Bank, offering an exchange of shares and cash to Sabadell shareholders. The proposal values Sabadell at €17.4bn, with a 30% premium over its share price. Sabadell’s board will assess the offer, which has sparked opposition from Sabadell’s chairman.

BBVA’s bid has faced resistance from Sabadell’s chairman, who argues that the offer undervalues Sabadell and is less attractive than previous bids. Sabadell has seen higher shareholder returns than BBVA, with its shares appreciating by 108% compared to BBVA’s 55% increase over the past 16 months. Sabadell’s board will evaluate the offer further.

Sabadell shareholders considering the offer are cautioned about potential losses, missed dividends, and tax liabilities. BBVA’s proposal faces scrutiny from Sabadell’s board, which will provide an assessment in due course. The takeover bid has generated mixed reactions, with Sabadell’s management expressing concerns about the offer’s valuation and potential drawbacks for shareholders.

Read more at Yahoo Finance: BBVA initiates takeover bid for Sabadell