Breaking: Credit Suisse (CS) Gets $1 Billion Buyout Offer From UBS; But There’s A Catch
As reported by financial times struggling Credit Suisse has received an buyout offer from Switzerland based private bank UBS. Earlier CoinGape published confirmation of a merger between Credit Suisse and UBS.
UBS Offer $1 Billion To Struggling Credit Suisse
UBS is largest private bank in the world and Credit Suisse-UBS merger is seen by bankers as only way to save Credit Suisse and its customers. Credit Suisse stock price fell by more than 30% in last month over the fears of a bank run.
Two US based banks Silicon Valley Bank (NASDAQ: SIVB) and First Republic (FRC) already failed and US Fed decided not to bailout the banks but save the customers. SVB recently filed for a chapter 11 bankruptcy.
Will Credit Suisse Accept UBS Offer?
Though UBS offer is on the table but we are yet to hear from Credit Suisse officials. The specifics of the deal include UBS purchasing Credit Suisse at 0.25 Francs a share in UBS stocks. As reported by Bloomberg quote,
As per the offer UBS has insisted on a material adverse change that provides UBS authority to walk out of deal anytime if its credit defaults spreads jump by 100 basis points or more.
The post Breaking: Credit Suisse (CS) Gets $1 Billion Buyout Offer From UBS; But There’s A Catch appeared first on CoinGape.
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Sunil Sharma
CoinGape
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