(Bloomberg) -- Banco Sabadell SA’s profit beat estimates in the third quarter, providing tailwind as the lender seeks to avoid a takeover by rival BBVA SA.
Net income was €503 million ($546 million) in the three months through September, the bank said in a statement on Thursday. That compares with an analyst estimate of €454 million.
Chief Executive Officer Cesar Gonzalez-Bueno is facing an acquisition proposal from BBVA that he has rejected as too low. Gonzalez-Bueno has instead promised to return more money to shareholders, previously lifting the payout target for this year and next to €2.9 billion from €2.4 billion, in a bid to convince investors they will be better off if his lender remains independent.
Spain’s competition authority CNMC said Wednesday it will hand down a verdict within weeks on whether the proposed takeover would raise competition concerns. The agency’s approval is necessary before BBVA can ask Sabadell’s shareholders to decide on its offer.
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