A bid of up to $1 billion has been made by UBS to purchase Credit Suisse. According to the Financial Times, the proposed all-share merger between Switzerland’s two largest banks might be finalized as early as Sunday night. The price of the transaction is expected to be considerably lower than Credit Suisse’s Friday closing price.
The purchase proposal comes at a time of volatility and ambiguity for Credit Suisse. The recent failures of Silicon Valley Bank and Signature Bank have caused the bank to experience a crisis of confidence. Credit Suisse has come under pressure from regulators and authorities to come up with a solution swiftly because it is one of the most important banks in the world to be caught up in the upheaval.
Both banks anticipate big changes as a result of the UBS bid. According to reports, the Swiss government is considering amending the country’s legislation to forgo a shareholder vote on the transaction, which would hasten the process of completion.
According to sources, UBS made a bid to buy Credit Suisse on Sunday morning for 0.25 Swiss francs ($0.27) per share to be paid in UBS stock. This is a small portion of Friday’s closing share price for Credit Suisse, which was 1.86 Swiss francs.
According to the publication, the offer also stipulates that if there is a “significant unfavorable change,” the transaction will be nullified if Credit Suisse’s credit default spreads rise by 100 basis points or more.
