Credit Suisse rejects UBS’s initial purchase offer of 1 billion dollars and continues negotiations
It is known that the authorities are considering modifying the legislation to allow the purchase without the need for a vote of UBS shareholders. Operation that is being discussed with the Swiss Government, the Swiss National Bank and regulatory and competition entities.
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Headquarters of UBS and Credit Suisse, in Zurich. Photo: EFE
Euskaraz irakurri: Credit Suissek uko egin dio UBSren 1,000 milioi dolarreko eskaintzari eta negoziatzen jarraitzen dute
The bank ubs, the largest in Switzerland, would have offered buy Credit Suisse for $1 billionan initial offer that, according to the Bloomberg agency, has been rejected by Credit Suisse executives, considering it too low.
This in view of the fact that this offer would be equivalent to 0.25 Swiss franc cents per share, compared to its closing price last Friday, which was 1.86 francs and which already reflected a loss of more than a quarter of its value with respect to a week before.
The operation is being discussed with the Swiss government, the Swiss National Bank and regulatory and competition entities, according to the Financial Times newspaper.
The Swiss Executive in plenary session today resumed a meeting that began on Saturday night to discuss the alternatives that are on the table to prevent the bank from continuing to sink on Monday, at the opening of the Zurich Stock Exchange.
The authorities would be considering modify the legislation to avoid a vote by UBS shareholders in relation to this transaction, which according to all analysts should be announced today.
Other media outlets have indicated that UBS is requesting that the Swiss Confederation participate with financing for this possible operation in view of the costs that would be involved in liquidating some Credit Suisse business units and eventual legal proceedings in the country or in other jurisdictions.
The Association of Employees Swiss Bankers has regretted that all these negotiations are being carried out in the greatest secrecy. No public instance, nor the banks involved, have wanted to make no public comment about the future of Credit Suisse.
This bank employs more than 50,000 people in the world, of which 17,000 are in Switzerland, a workforce for which there is great fear if the bank is sold and its structure reduced.
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