ZURICH (dpa-AFX) – UBS has offered to take over Credit Suisse (Credit Suisse (CS)) for up to one billion US dollars. To this end, the Swiss authorities plan to change the law in such a way that a shareholder vote for the transaction can be avoided. This is to guarantee that the transaction will be completed by Monday, as the “Financial Times” (FT) reported on Sunday.
The share deal between the two banks is expected to be signed on Sunday evening at a fraction of Credit Suisse’s closing price on Friday. The shareholders would go practically empty-handed, as four people familiar with the matter told the “FT”.
Accordingly, UBS offered to pay 25 centimes per share in its own shares. On Friday, CS ended trading at around CHF 1.86. In addition, UBS insisted that the deal would be void if its default spreads, i.e. the protection against default, increased by 100 basis points or more.
As the situation is changing rapidly, there is no guarantee that terms will remain the same or that an agreement will be reached, the report said. Some of the “FT” interlocutors also criticized that the current conditions would treat Credit Suisse shareholders unfairly. The undermining of the normal corporate governance rules for UBS shareholders was also criticized.
The Swiss National Bank and Finma played a key role in negotiating the terms. There were only a few contacts between Credit Suisse and UBS itself, the informants of the “FT” said. Both banks have been in talks with regulators since last Wednesday after CS asked for an emergency credit line of CHF 50 billion.
A spokeswoman for Credit Suisse did not want to comment on the post to the AWP news agency./cg/ra/AWP/nas
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