BBVA’s Sabadell Pursuit in Limbo Again as Markets Cheer TSB Sale

BBVA SA’s pursuit of Banco Sabadell SA was thrown into doubt yet again after the target of its bid agreed to sell its UK business and pledged to pay out the proceeds to shareholders.

The £2.65 billion ($3.64 billion) disposal was announced late Tuesday, only a day after BBVA said it’s proceeding with its offer for the smaller Spanish rival, even though it won’t be allowed to fully integrate it for years. Shares of Sabadell rose as investors wagered BBVA would have to raise the price to succeed with an unsolicited approach it unveiled more than a year ago.