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Says 1.1% of capital accept BBVA bid with partial recount

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Spain's market supervisor publishes bid results Oct. 17

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BBVA aims to secure 50.01% of capital

(Adds details from paragraph 6 onwards, including date of bid's

full acceptance, comments from executives)

By Jesús Aguado

MADRID, Oct 14 (Reuters) - Spain's Sabadell

said on Tuesday that 2.8% of shareholders who represent 30.8% of

the bank's capital have accepted BBVA's 16.48 billion

euro ($19.07 billion) hostile takeover bid.

According to this partial take-up recount, that represents

1.1% of Sabadell's total share capital, the bank said.

Sabadell only provided details of the acceptance level of

shares held by its investors in the bank. About 40% of

Sabadell's capital is held by retail shareholders, of which

around 80% are also clients of the bank.

Shareholders of Sabadell had until October 10 to accept

BBVA's deal and the Spanish stock market supervisor will publish

complete results of the bid on Friday.

Sabadell's 20 largest shareholders are international

institutional investors, with its biggest shareholder BlackRock ( BLK )

owning around 7%, according to the Spanish supervisor.

BBVA's hostile pursuit, dating back to May 2024, has turned

into one of the most bitter M&A battles in Spain in recent

years. It aims to create one of Europe's largest lenders despite

government opposition that would prevent it from merging the two

entities for three years.

CASH ALTERNATIVE

BBVA aims to secure support from at least 50.01% of Sabadell

shareholders, though it can lower the threshold to 30%.

If BBVA removes this condition and secures between 30% and

50%, it would be required to submit a second mandatory offer for

the remaining shares, involving a cash alternative. In any case,

the fair-value price would be set by the supervisor.

Sabadell CEO Cesar Gonzalez-Bueno told Reuters last week

that the most-likely scenario was that BBVA would not reach a

threshold of 30% initially, though it could end up in the region

of the low 30%s.

In contrast, BBVA's CEO Onur Genc said that the lender was

"very comfortable" it would reach 50%.

Analysts are divided on the likely outcome.

Since BBVA improved its bid in September- offering one

of its own shares for each 4.8376 Sabadell shares -, the

so-called spread has turned positive. Based on Monday's closing

prices BBVA is offering a 1.85% premium to Sabadell's share

price.

($1 = 0.8644 euros)