Banco Sabadell rejects merger proposal from BBVA

Banco Sabadell (BNDSF) commented on BBVA‘s (BBVA) “unsolicited, indicative and conditional proposal” to merge with Banco Sabadell. “The Board believes that the Proposal significantly undervalues the potential of Banco Sabadell and its standalone growth prospects. The Board is highly confident in Banco Sabadell’s growth strategy and its financial targets and is of the view that Banco Sabadell’s standalone strategy will create superior value for its shareholders. Furthermore, the recent material decline and volatility in the BBVA share price increases the uncertainty around the value of the Proposal,” Sabadell said in a statement. The board concluded that it is not in the best interest of Banco Sabadell and its shareholders and has therefore rejected BBVA’s proposal.