Shares in BBVA rise 5.7% while Sabadell falls 6.5% after failed takeover bid

BBVA Shares Surge 5.7% as Sabadell Stock Drops 6.5% After Bid Failure

Impact of Failed Takeover on BBVA and Sabadell

MADRID (Reuters) -Shares in BBVA rose 5.7% after it announced it would immediately resume share buybacks following its failure to convince Sabadell shareholders to back its 16.32 billion euro ($19.09 billion) hostile takeover bid, while shares in the smaller lender fell 6.5%.

BBVA's Share Buyback Announcement

Shareholders of Sabadell tendered just 25.47% of voting rights, below even the lower threshold where it could have decided to move on if it had waived the control condition.

Sabadell Shareholder Response

Broker RBC said the failed attempted takeover of Sabadell "comes with some relief, not because the transaction was a bad one, but because the uncertainty overhanging both banks had lasted far too long."

Broker Insights on the Takeover Attempt

($1 = 0.8550 euros)

(Reporting by Jesús Aguado and Emma Pinedo; editing by David Latona)