Spain’s BBVA launches a $17.44 billion bid for Sabadell, with the merger expected to generate 900 million euros in cost savings by 2029. Sabadell shareholders have until October 7 to tender their shares, with results expected by October 14. BBVA aims to secure 49.3% of Sabadell’s shares.

BBVA’s Chief Executive Onur Genc touts the deal’s value creation potential, while Sabadell’s board has 10 days to issue a formal opinion on the bid. BBVA aims to secure at least 50% of voting rights and has received authorization to lower the acceptance threshold to 30%.

Sabadell’s minority shareholders criticize BBVA’s offer as undervaluing the bank. BBVA’s offer includes one newly issued ordinary share and 0.70 euros in cash for every 5.5483 ordinary Sabadell share. Sabadell’s Chairman Josep Oliu claims shareholders would lose more than 8% of their investment if they accept BBVA’s offer.

BBVA has ruled out sweetening its offer, despite investor expectations. The takeover was approved with strict conditions, including a three-year ban on a full merger. The merger is expected to occur by the end of 2028 or beginning of 2029. Sabadell’s shares trade above the original 30% premium offered by BBVA.

Read more at Yahoo Finance: BBVA set to launch 14.9 billion euro hostile bid for Sabadell on Monday