Credit

Bbva, in the midst of the Sabadell takeover bid, the judiciary attacks the bank

Investigation into whether BBVA paid a former high-ranking police officer to spy on rivals, politicians and journalists

FILE PHOTO: A woman walks past a branch of Spain's BBVA bank in Bilbao, Spain, May 13, 2024. REUTERS/Vincent West/File Photo

2' min read

2' min read

While the Bbva is engaged in a hostile bid of 11.5 billion on rival Sabadell, a judicial tile arrives on the Spanish banking giant. The Madrid judiciary, in particular prosecutor Alejandro Cabaleiro, is demanding that Banco Bilbao Vizcaya Argentaria be prosecuted as part of a wide-ranging criminal investigation into alleged corporate espionage.

The investigation by the judiciary

According to investigators and the documentation presented by prosecutor Alejandro Cabaleiro, the bank and some former executives should be tried on charges of bribery and revealing secrets.

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BBVA president Carlos Torres was not listed as a suspect, but Cabaleiro stated in the document that Torres sent e-mails to his executives while in a previous role at the bank to express interest in the private dealings of acquaintances.

Torres, who joined the bank in 2008 and served as CEO between 2015 and 2018, has previously denied involvement.

Payments to spy on rivals, politicians and journalists

The prosecutor's move is part of a years-long investigation into whether BBVA paid a former high-ranking police officer to spy on rivals, politicians and journalists. The bank and several executives were formally investigated in early 2020. An investigating judge has not yet decided whether they should be prosecuted.

Cabaleiro's opinion comes as Torres is spearheading BBVA's hostile takeover bid for Spanish rival Banco Sabadell SA, a merger that would create Spain's second largest bank and one of the biggest acquisitions in European banking in recent years. The attempt is encountering strong resistance from the Spanish government, which has indicated that it is unlikely to approve such a merger.

Under Spanish law, there is an investigative phase in which both an investigating judge and a public prosecutor are involved. Although the public prosecutor may recommend the remand of a suspect for trial, doing so is the prerogative of the judge and Cabaleiro's opinion may still be ignored. Judges and prosecutors tend to agree on whether or not cases should be referred for trial.

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