08:50 AM EDT, 05/10/2024 (MT Newswires) -- Banco Bilbao Vizcaya Argentaria's ( BBVA ) hostile takeover bid for Banco de Sabadell SA 'violates a rule governing how companies must make such approaches,' Sabadell said in a filing with the country's securities regulator late Thursday.

The documents provided by BBVA and the investor meeting it organized "introduce incomplete information that may affect the market," Sabadell said in the filing, without sharing additional details.

After initially being rebuffed by Sabadell's directors, who said its original offer "significantly undervalues" the Spanish lender, BBVA's board made an all-share bid Thursday, offering one newly issued BBVA share for every 4.83 Sabadell shares, representing a 30% premium over the closing prices of both banks on April 29. The offer is valued at 12.2 billion euros ($13.1 billion), according to Reuters.

The Spanish government opposes BBVA's hostile takeover bid and has the authority to block any merger or acquisition of a bank, Economy Minister Carlos Cuerpo said. The government can decide on any such offer within six months after consulting with regulators including the securities regulator CNMV and the Bank of Spain, according to a Reuters report.

BBVA and Sabadell did not immediately respond to MT Newswires' requests for comment.

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