‘Ailing Credit Suisse rejects takeover bid UBS’ 14:45 in Abroad , Economy The two Swiss banks have been talking to each other and the Swiss government about a possible takeover for days.

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Credit Suisse
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The bank Credit Suisse, which is in dire straits, has rejected a takeover bid from the bank UBS. This is reported by economic news agency Bloomberg. Switzerland’s two largest banks have been discussing a possible takeover with each other and with the Swiss government for days.

Earlier today, the Financial Times reported that UBS had made a $1 billion bid to acquire Credit Suisse. To close the deal quickly, the Swiss government is said to be planning to change laws so that shareholder approval is not required.

Normally, UBS would have to give its shareholders six weeks to review the acquisition. With emergency measures from the Swiss government, that process can be skipped, but for now Credit Suisse does not agree to the deal.

According to the Financial Times, some people involved call the terms of the takeover unfair to Credit Suisse and criticize the possible circumvention of takeover laws. Credit Suisse ended Friday with a market value of 7.4 billion Swiss francs, about $8 billion. So UBS’ offer is a fraction of that.

Insiders report to Bloomberg that Credit Suisse thinks the offer is far too low. This would also disadvantage shareholders and employees who are still entitled to payment of the shares, according to the sources.

Loan of 50 billion

Credit Suisse is in deep trouble and saw its value drop by a quarter last week. Credit Suisse received a loan of more than 50 billion euros from the Swiss central bank to stay afloat. That loan could not prevent the share price of the bank from continuing to fall and customers of the bank withdrawing their money en masse.

Credit Suisse was hit by the collapse of US banks Silicon Valley Bank and Signature Bank. The collapse of those banks and the problems at Credit Suisse have led to great unrest in the financial markets.

  • Swiss government meets on Credit Suisse, possible takeover by UBS
  • Bank shares fall again, ‘the banking fear is not over yet’
  • Abroad

  • Economy

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