Credit Suisse Balks At $1 Billion Offer from UBS

Credit Suisse is reportedly opposing a $1 billion takeover offer from UBS.

UBS’s offer made on Sunday was to be paid at 0.25 Swiss francs per share, according to financial media reports. Credit Suisse shares were trading at around CHF1.86 at the close of trading on Friday, giving the bank a market capitalization of around CHF7.4 billion.

UBS also wants the right to reverse transactions if credit default spreads increase by more than 100 basis points. of financial times.

bloomberg report:

Swiss authorities are seeking to broker a deal to deal with the Credit Suisse crash. Credit Suisse sent shockwaves through the global financial system last week as panicked investors sold stocks and bonds following the collapse of several smaller U.S. financial institutions. A liquidity backstop by the Swiss central bank temporarily halted the decline, but the market drama could affect the broader industry, with the risk that customers and counterparties will continue to flee.

The merger of two global systemically important banks has involved Swiss and U.S. authorities in the first complex talks since the financial crisis, according to people familiar with the matter. Negotiations accelerated on Saturday, with all sides arguing for a solution that could be implemented quickly a week after clients withdrew funds and counterparties withdrew from trading with Credit Suisse.

It is unclear whether Credit Suisse can survive without some kind of deal to help banks on Monday. Planning. Financial Times.

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