UBS has offered to buy the troubled rival bank Credit Suisse for up to $1 billion, according to a report by the Financial Times on Sunday (March 19). The report said that the proposed all-share deal between Switzerland’s two biggest banks is set to be signed as soon as Sunday evening. The deal will be priced at a fraction of Credit Suisse’s closing price on Friday, it added. The troubled bank was valued at the equivalent of about $8 billion at the close on Friday.
UBS has been in talks to finalise a mammoth takeover of Credit Suisse and reassure investors before the markets reopen on Monday. Switzerland’s banks have been in urgent negotiations throughout the weekend, with the government, central bank, and financial regulators all involved.
A day back, the news agency Reuters reported that UBS was seeking government guarantees of about $6 billion for the takeover of Credit Suisse. A source told Reuters the guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges.
The source added that talks to resolve the crisis of confidence in Credit Suisse were encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine.
More details will be added shortly
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