Sept 26 Reuters Spanish bank BBVA approved the issuance of securities worth as much as 1.5 billion euros 1.67 billion convertible into newly issued ordinary shares, the company said on Tuesday.

The value of the new issuance excludes shareholders39; preemption rights, the bank said.

The move is aimed at strengthening its capital base as it moves forward with its bid to acquire rival Sabadell in a deal that values the smaller bank at as much as 12 billion euros.

Launched in April, the bid was met by opposition from the government but was approved by the European Central Bank on Sept. 5.

BBVA CEO Onur Genc said on Wednesday that the current offer is very attractive and would likely convince Sabadell39;s shareholders.

Under Spanish law, the government cannot stop the takeover bid but has the final word on allowing a merger between the two entities. The acquisition must also be authorised by Spain39;s stock market supervisor and its antitrust watchdog CNMC.

BBVA, Spain39;s secondlargest bank by market value, expects the CNMC to approve the merger within two months, potentially with some conditions.

1 0.8968 euros

Reporting by Natalia Siniawski, editing by Inti Landauro and Jason Neely

Source Reuters