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Credit Suisse – UBS Group AG has proposed a $1 billion takeover

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UBS Group AG has offered to purchase Credit Suisse for up to $1 billion. The Swiss government is planning to amend national rules to bypass a shareholder vote on the deal, Reuters reported, citing the Financial Times.

The proposed transaction between the two largest Swiss banks is expected to be signed on Sunday evening, the daily reported. It was added that the amount of the transaction will be only a fraction of the valuation of Credit Suisse shares – described the Reuters Agency.

She added that an offer of 0.25 Swiss francs per share was made on Sunday morning, the newspaper reported, citing people familiar with the matter. Meanwhile, Credit Suisse shares traded at 1.86 Swiss francs on Friday.

Credit Suisse declined to comment, and UBS Group and the Swiss government did not immediately respond to a Reuters request for comment.

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UBS and Credit Suisse banks in ZurichPAP/EPA/MICHAEL BUHOLZER

“FT”: UBS Group AG talks about the acquisition of Credit Suisse

As the Financial Times reported on Saturday, UBS Group AG is in talks to acquire all or part of Credit Suisseits eternal rival – “with the express blessing of the Swiss regulators”.

The possibility of taking over Credit Suisse was also mentioned by JP Morgan analysts, “with UBS as a potential option”.

The idea of ​​a merger between the two largest Swiss banks comes up regularly, but has been generally rejected due to competition issues and risks to the stability of the Swiss financial system.

UBS and Credit Suisse in ZurichPAP/EPA/MICHAEL BUHOLZER

Credit Suisse price drops

The sharp drop in Credit Suisse’s quotations was caused by the declaration of the central bank of Saudi Arabia, its largest shareholder, which announced that it would not provide it with additional capital.

On Wednesday evening, the Swiss central bank and Finma, the market regulator, issued a joint statement saying that Credit Suisse meets the capitalization and liquidity requirements for “systemically important” banks and that the central bank will “provide liquidity to Credit Suisse” if necessary.

Credit Suisse said on Thursday morning that it would borrow up to 50 billion Swiss francs from the National Bank Switzerland as part of the so-called “decisive action” aimed at increasing its liquidity.

The problems of Credit Suisse, a global bank, have deepened the perturbations in the global financial sector after the recent collapse of the US Silicon Valley Bank.

Read also: Troubles of a Swiss bank, massive drops in the stock market. “risk of bankruptcy”

Main photo source: PAP/EPA/MICHAEL BUHOLZER



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