Spanish banking giant bids for Italian rival

29th March 2005, Comments 0 comments

29 March 2005 , MADRID-Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) announced it was going ahead with a EUR 6.6 billion bid for Italian bank BNL.

29 March 2005  

MADRID-Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) announced it was going ahead with a EUR 6.6 billion bid for Italian bank BNL.

The approach by BBVA is being watched particularly closely in international banking circles because it is seen as a sign of pressure on Italian banking to open up to foreign interests.

BBVA said it would offer one of its own shares for five shares in Banca Nazionale de Lavoro (BNL) in its bid to acquire the stock it did not already own, about 85 percent of the total at a cost of about EUR 6.6 bn.

BBVA would issue 531.13 shares with a face value of EUR 260.25m, BBVA said in a statement to Spanish stock market authorities.

The offer was conditional on acceptance by 50 percent of BNL shareholders.

The Spanish bank also announced a programme to buy back 3.5 percent of its capital at a maximum price of EUR 14.5 per share.

The price of shares in BBVA firmed by 0.08 percent to 12.54 euros in initial trading on Tuesday.

Spanish press reports had said late on Monday that the board of BBVA had met during the day and had decided to launch formally its bid for BNL, outlined on 18 March.

The European Union has been pushing Italy to open up its financial markets and BBVA said that in the 10 days since its interest in a deal became known that matters had "evolved in positive fashion", according to press reports.
  
[Copyright EFE with Expatica]

Subject: Spanish news

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