BBVA's takeover bid (OPA) for Banco Sabadell has encountered multiple legal and political challenges in Spain. BBVA sought protection from the European Commission against government intervention in the offer, which included a limit of 1.5 billion euros on the bid increase. The Spanish National Court (Audiencia Nacional) rejected requests to suspend the government's use of a public consultation process related to the OPA. Banco Sabadell has increased its treasury shares above 3.5% for the first time since 2013 to defend against the bid. Sabadell's CEO, César González-Bueno, argues that there is no room for mergers among major Spanish banks like BBVA, Santander, or Caixa due to public interest concerns, emphasizing that the interest to be considered goes beyond solvency and competition. Political figures including former presidents Artur Mas, Pere Aragonès, and Ximo Puig, along with five former regional economy ministers from Catalonia and Valencia, have opposed the takeover, describing it as unjustified and against public interest. Yolanda Díaz, a prominent political leader, has also voiced strong opposition, noting that even the Church is against the OPA. The Catalan Parliament has formally requested the Spanish government to block the bid. The government is conducting a detailed analysis of the takeover, which remains under consideration by the Council of Ministers. Meanwhile, Banco Sabadell has proposed shareholder returns of 9% amid the takeover attempt. The PSOE party has aligned with ERC and Junts to seek banking licenses for the Catalan Institute of Finance (ICF) as a strategy to undermine the BBVA bid. The Spanish Competition Authority concluded that Sabadell is not essential for the SME sector. Additionally, Citi has reiterated a 'buy' recommendation for all Spanish banks except Sabadell and Unicaja, reflecting market skepticism about Sabadell's position amid the takeover attempt.