Spanish bank BBVA confirmed today it was making a €6.4 billion bid for Italy's BNL in what would be the first foreign takeover of an Italian bank.
BBVA, which owns 14.7 per cent of BNL, bid for 100 per cent of Italy's sixth-biggest bank, offering one new share for every five outstanding shares in BNL.
BBVA said it would issue 531 million new shares - a capital increase of more than 15 per cent - to bid for BNL and said the offer was conditional on its obtaining acceptance of more than 50 per cent of BNL shares, including the stock it already holds.
It also announced a plan to buy back up to 3.5 per cent of its own shares at no more than €14.5 before September 30th.
BBVA shares rose as much as 0.6 per cent in early trade to €12.61 - rising just above the price of €12.60 the stock was at when BBVA first announced its intentions on March 18th.
Trade in BNL'S ordinary and savings shares and other related instruments was suspended on Milan's bourse today before BBVA's announcement.