BBVA to issue 1.5 bln euros worth of convertible securities
Sept 26 (Reuters) -Spanish bank BBVA BBVA.MC approved the issuance of securities worth as much as 1.5 billion euros ($1.67 billion) convertible into newly issued ordinary shares, the company said on Tuesday.
The value of the new issuance excludes shareholders' pre-emption rights, the bank said.
The move is aimed at strengthening its capital base as it moves forward with its bid to acquire rival Sabadell SABE.MC in a deal that values the smaller bank at as much as 12 billion euros.
Launched in April, the bid was met by opposition from the government but was approved by the European Central Bank on Sept. 5.
BBVA CEO Onur Genc said on Wednesday that the current offer is "very attractive" and would likely convince Sabadell's shareholders.
Under Spanish law, the government cannot stop the takeover bid but has the final word on allowing a merger between the two entities. The acquisition must also be authorised by Spain's stock market supervisor and its antitrust watchdog CNMC.
BBVA, Spain's second-largest bank by market value, expects the CNMC to approve the merger within two months, potentially with some conditions.
($1 = 0.8968 euros)
Reporting by Natalia Siniawski, editing by Inti Landauro and Jason Neely
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
