(Reuters) - Poland's Bank Zachodni WBK on Monday backed a $5.8 billion offer by Spain's top lender Santander, saying it reflected the fair value and that the new owner would help it grow.
Santander was given the green light on Friday by Poland's financial and markets regulator KNF to buy BZ.
It will launch a tender for all of the Polish bank's shares later this week as part of a deal to buy a 70-percent stake from troubled Irish lender Allied Irish Banks (ALBK.I).
Santander beat European rivals seeking a slice of Polish growth with a deal last September to buy control of the country's fifth largest bank by assets.
The tender offer is 6.4 percent and 9.3 percent higher than the average price of BZ WBK's shares over the three and six months preceding the announcement of the tender offer, the Polish bank said.
"In the opinion of the management board, the strategic plans of Banco Santander... would create opportunities for the bank to grow and pursue its strategic targets," BZ WBK said.
Deutsche Bank, which is advising BZ WBK, said Santander's offer was higher than its value when compared with rivals and higher than the midpoint of the range of valuations using the dividend discount method.
It added the price included a control premium that was below the average premium in deals for controlling stakes in Europe.
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