The American asset manager BlackRock, following the example of the Swiss bank UBS, was considering a bid for the troubled Credit Suisse. That reports the Financial Times Saturday based on insiders. BlackRock is one of Credit Suisse’s largest shareholders and seemed to want to avoid a takeover of UBS. That bank is already in talks with Credit Suisse about a full or partial takeover.
The Financial Times initially reported that BlackRock, by far the largest asset manager in the world with EUR 8,200 billion in investments, is still considering an offer. The company would have considered a number of options in which it would collaborate with other investors. An offer for some parts of Credit Suisse – which parts is unclear – was one of the options. BlackRock would have already announced its plans to Credit Suisse, but the Swiss bank wanted to Financial Times do not comment. BlackRock was correct after the reporting of the Financial Times to the Bloomberg news agency know not thinking about making a bid for Credit Suisse.
Heavy weather
Whether or not BlackRock makes an offer, it is clear that Credit Suisse is in dire straits. Last week, the bank saw almost a third of its market value evaporate at its lowest point and it has recorded losses for the past five quarters. “As a precaution”, the bank announced that it will use an emergency loan from the Swiss central bank, amounting to a maximum of 51 billion euros. Intended for when acute money problems arise, for example due to customers running away.
Shortly before the announcement of that loan, CEO Ultirch Körner said that government support was “not a subject”. The Swiss government nevertheless convened an emergency meeting, which discussed a ‘rescue takeover’ by UBS. At that Swiss bank – the largest in Switzerland – the Dutchman Ralph Hamers is the boss. Investment bank JPMorgan said on Thursday that it expects a takeover to be “highly likely”.