Spanish banking giant BBVA raised its takeover offer for Sabadell on Monday as it seeks to lure its smaller rival's shareholders before the October 7 deadline to accept its hostile bid.

The announcement came 10 days after Sabadell's board urged shareholders to reject BBVA's attempt to create a new European banking colossus, saying the bid undervalues the company.

BBVA said in a statement on Monday that it was raising the offer to Sabadell shareholders by 10 percent to 3.39 euros per share.

The new offer values Sabadell at 19.5 billion euros ($22.9 billion).

BBVA said it would not make further improvements to the bid or extend the deadline for shareholders to accept it.

"With this improved offer, we are putting an extraordinary proposal in the hands of Banco Sabadell shareholders," BBV

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