Tensions mounted ahead of the closing on Friday of Spanish banking giant BBVA's hostile takeover bid for smaller national rival Sabadell whose uncertain outcome will be announced on October 17.

The proposed deal aims to create a European banking powerhouse capable of competing with industry heavyweights such as Santander, BNP Paribas and HSBC.

BBVA, Spain's second-largest bank which boasts a big footprint in Latin America and Turkey, launched the bid for Sabadell, the country's fourth-largest lender, in September.

Shareholders have until Friday at 23:59 (2159 GMT) to accept or reject the offer whose outcome remains uncertain due to the large number of small Sabadell shareholders.

No investor holds more than seven percent of the bank, founded in 1881 near Barcelona.

BBVA chief executiv

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