Established Spanish bank BBVA launched a hostile takeover bid to buy rival Banco Sabadell on Thursday.
Earlier this week, Sabadell rejected a €12 billion offer from BBVA. The move sent a shock through the Spanish financial ecosystem as no Spanish bank has attempted a hostile takeover in decades.
Josep Oliu, chairman of Sabadell, accused BBVA of violating Spanish takeover bid rules Government of Madrid reacted negatively to the takeover. However, BBVA Chairman Carlos Torres does not appear to be backing down as he pushes the deal forward in an appeal to regulators.
On Thursday, shares of BBVA fell 6% and those of Banco Sabadell rose more than 3%. Since talks of a takeover in 2020, Sabadell shares have risen fivefold and BBVA is up 160%.
Torres and Oliu were already neck and neck in 2020 when BBVA failed in negotiations to take over Sabadell. CEO of Sabadell and BBVA CFO Reportedly cancelled met in London this week and returned to Madrid.