BBVA’s takeover bid secures only 2.8% acceptance from Sabadell shareholders

Core Insights - BBVA's takeover bid for Banco Sabadell has received only 2.8% acceptance from shareholders, indicating a strong rejection of the offer [1][5] - A significant portion of Sabadell's share capital, approximately 31%, is held by clients who are also shareholders, suggesting a potential conflict of interest in the acceptance of the bid [1][3] - The outcome of the takeover bid will be determined by the acceptance rate, with specific thresholds impacting BBVA's next steps [2][3] Shareholder Response - Only 1.1% of Sabadell's total share capital has been tendered in favor of the takeover, highlighting the lack of support for BBVA's offer [1] - An announcement regarding the fate of the remaining shareholders is expected on 17 October 2025, which will clarify the acceptance rate [2] Potential Outcomes - If over half of the shareholders accept the offer, BBVA will gain control of Sabadell; however, if acceptance is below 30%, the offer will be voided [2] - Should the acceptance rate fall between 30% and 50%, BBVA may pursue a second, hostile takeover bid, which would require a cash offer and CNMV's approval [3] Financial Considerations - BBVA has allocated €8 billion ($9.4 billion) to fund a mandatory cash bid for Sabadell if the current offer is rejected [4] - The acquisition offer was initially made in April of the previous year and was increased by 10% last month, valuing Sabadell's shares at €3.39 each [4]