Sabadell Chairman says BBVA needs to present different value proposal to offset risks in deal

MADRID (Reuters) - The chairman of Spain's Sabadell, Josep Oliu, said on Thursday BBVA would have to present a "very different" value proposal to offset all the risks and difficulties the hostile takeover bid from Sabadell's larger rival represents.

Oliu has previously urged the government, which opposes the deal due to the potential impact on competition and jobs, to be transparent about the takeover bid his bank faces from BBVA so shareholders have all the information they need before deciding whether to tender their shares.

"A very different value proposal to the one rejected by the board would be needed to compensate for all the risks and difficulties that this operation poses," Oliu told shareholders in Barcelona at an ordinary shareholders' meeting.

In April, BBVA launched a more than 12 billion euro ($13 billion) bid for all of Sabadell's shares, which turned hostile in May after Sabadell's board rejected the offer. The board said then that BBVA's proposal significantly undervalued the potential of Sabadell and its growth prospects.

On Thursday, Oliu warned that if BBVA's current succeeded it would lead to a significant "loss of customers, loss of business and shareholder value, which technically means negative revenue synergies."

Sabadell has warned of potential negative effects of the deal for SME lending.

($1 = 0.9238 euros)

(Reporting by Jesús Aguado; editing by Andrei Khalip)