Banco Sabadell Purchase of Banco Gallego Imminent, Frob Says

Banco Sabadell SA (SAB), Spain’s fifth- biggest bank, made the best offer to buy nationalized-lender Banco Gallego SA, the country’s bank rescue fund said.

Talks are under way with Sabadell over the terms of the contract to take control of Gallego, the rescue fund, known as Frob, said in an e-mailed statement today. The award of La Coruna, Spain-based Gallego to Sabadell is “predictable and imminent,” it said.

Spain is selling Gallego, a lender with 4.7 billion euros ($6.2 billion) of assets that was 49 percent-owned by NCG Banco, a nationalized bank, as Frob seeks buyers for banks it took control of in the wake of the country’s property crash. Gallego would help Sabadell extend its earnings in the north western region of Galicia.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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