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UBS makes a $1,000 million takeover bid for Credit Suisse to avoid collapse.

Credit Suisse’s main Swiss rival, UBS, has announced that it will present a buyout offer of around one billion dollars for the entity. According to the Financial Times. The operation was announced this week to avoid a fresh collapse in Monday’s first trading session.

Rumors of UBS’s first takeover of Credit Suisse, Switzerland’s second-largest bank by market cap, intensified over the weekend after it was revealed that the potential buyer had asked the Swiss government for guarantees that part or your rival would take over. Don’t get into legal trouble or damage.

Beset by serious financial and image problems, Credit Suisse bank plunged 24% on the Zurich stock exchange last Wednesday after its main shareholder, the National Bank of Saudi Arabia, said it would not invest more in Switzerland from 2022. To clear his tainted accounts.

To calm the market, the Swiss National Bank announced a 50,000 million franc (50,500 million euro, $54,000) loan to Credit Suisse hours after the stock market crash, allowing the unit to return 19% on the Zurich stock exchange. Thursday, but on Friday shareholder doubts returned and the stock fell 8% again.

Credit Suisse, which was founded in 1856, reported the losses of millionaires for two years: in 2021 they amounted to 1,572 million Swiss francs (1,600 million euros, 1,690 million dollars), and in 2022 they increased almost five times to 7,293 million francs (7.4 million euros ) made up. million dollars). The financial problems are compounded by many other things related to the bank’s reputation, with various resignations of its directors embroiled in various scandals, which have led to extensive changes in the board of directors in recent years.

Source: El Diario





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