{"id":2642,"date":"2023-03-19T10:32:16","date_gmt":"2023-03-19T15:32:16","guid":{"rendered":"https:\/\/embarrdowns.com\/ubs-group-offers-to-buy-credit-suisse-group-for-up-to-1-billion\/"},"modified":"2023-03-19T10:32:17","modified_gmt":"2023-03-19T15:32:17","slug":"ubs-group-offers-to-buy-credit-suisse-group-for-up-to-1-billion","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/ubs-group-offers-to-buy-credit-suisse-group-for-up-to-1-billion\/","title":{"rendered":"UBS Group Offers to Buy Credit Suisse Group for Up to $1 Billion"},"content":{"rendered":"

UBS Group AG has offered to buy Credit Suisse Group AG for as much as $1 billion, in a bid to stabilize the Swiss banking sector and avert a deep crisis of confidence.[0]<\/a><\/sup> Talks between UBS, Credit Suisse, the Swiss National Bank (SNB) and other regulators are ongoing, and the terms of any end deal could be different from those reported.[1]<\/a><\/sup><\/p>\n

UBS is asking the Swiss government to take on certain legal costs and potential future losses in any takeover, and has tabled an offer of about $1 billion for Credit Suisse, which the smaller Swiss bank believes is too low.[2]<\/a><\/sup> The UBS offer was communicated on Sunday with a price of 0.25 francs a share to be paid in UBS stock, and included a material adverse change that voids the deal if its credit default spreads jump by 100 basis points or more.<\/p>\n

Representatives for UBS, Credit Suisse, and the Swiss finance ministry have declined to comment, while the Bank of England and Finma have not responded to requests for comment.[3]<\/a><\/sup><\/p>\n

Credit Suisse has been brought to the brink of financial calamity despite securing a $54bn loan from Switzerland’s central bank several days ago.[4]<\/a><\/sup> The Swiss lender is considered a systemically important bank, employing approximately 5,000 people in the UK, and its potential collapse could have wide-reaching implications for the global financial system.<\/p>\n

UBS is hoping to avert a contagion that could evoke comparisons with the crisis of 2008, when banks including Bear Stearns and Lehman Brothers collapsed. As of Friday’s close, UBS had a market cap of $57.9B, while Credit Suisse, which has seen its stock plunge 73% Y\/Y, finished the session with an $8.6B market value.[3]<\/a><\/sup> Talks are accelerating, and all sides are pushing for a quick solution to be announced by Sunday evening at the latest.[5]<\/a><\/sup><\/p>\n

0. <\/span>“UBS offers up to $1 billion to rescue Credit Suisse: report” Business Insider, 19 Mar. 2023, https:\/\/www.businessinsider.com\/credit-suisse-ubs-offers-up-to-billion-rescue-deal-report-2023-3<\/a><\/a><\/p>\n

1. <\/span>“Credit Suisse: Bank of England won\u2019t object to takeover as UBS considers $1bn bid” The Guardian, 19 Mar. 2023, https:\/\/www.theguardian.com\/business\/2023\/mar\/19\/credit-suisse-bank-of-england-wont-object-to-takeover-as-ubs-considers-1bn-bid<\/a><\/a><\/p>\n

2. <\/span>“Switzerland mulls nationalization of Credit Suisse as UBS\u2019s $1 billion offer deemed too low” Fortune, 19 Mar. 2023, https:\/\/fortune.com\/2023\/03\/19\/switzerland-mulls-nationalization-of-credit-suisse-as-ubs-1-billion-offer-deemed-too-low\/<\/a><\/a><\/p>\n

3. <\/span>“UBS said to be in talks to take over embattled lender Credit Suisse: Report” Seeking Alpha, 19 Mar. 2023, https:\/\/seekingalpha.com\/news\/3948695-ubs-said-to-be-in-talks-to-take-over-embattled-lender-credit-suisse-report<\/a><\/a><\/p>\n

4. <\/span>“UK regulators back merger of banking giants Credit Suisse and UBS” Sky News, 19 Mar. 2023, https:\/\/news.sky.com\/story\/uk-regulators-back-merger-of-banking-giants-credit-suisse-and-ubs-12837876<\/a><\/a><\/p>\n

5. <\/span>“UBS faces pushback after offering to buy Credit Suisse for $1 billion” Fortune, 19 Mar. 2023, https:\/\/fortune.com\/2023\/03\/19\/ubs-faces-pushback-after-offering-to-buy-credit-suisse-for-1-billion<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

UBS Group AG has offered to buy Credit Suisse Group AG for as much as $1 billion, in a bid to stabilize the Swiss banking sector and avert a deep crisis of confidence.[0]<\/a><\/sup> Talks between UBS, Credit Suisse, the Swiss National Bank (SNB) and other regulators are ongoing, and the terms of any end deal could be different from those reported.[1]<\/a><\/sup><\/p>\n

UBS is asking the Swiss government to take on certain legal costs and potential future losses in any takeover, and has tabled an offer of about $1 billion for Credit Suisse, which the smaller Swiss bank believes is too low.[2]<\/a><\/sup> The UBS offer was communicated on Sunday with a price of 0.25 francs a share to be paid in UBS stock, and included a material adverse change that voids the deal if its credit default spreads jump by 100 basis points or more.<\/p>\n

Representatives for UBS, Credit Suisse, and the Swiss finance ministry have declined to comment, while the Bank of England and Finma have not responded to requests for comment.[3]<\/a><\/sup><\/p>\n

Credit Suisse has been brought to the brink of financial calamity despite securing a $54bn loan from Switzerland’s central bank several days ago.[4]<\/a><\/sup> The Swiss lender is considered a systemically important bank, employing approximately 5,000 people in the UK, and its potential collapse could have wide-reaching implications for the global financial system.<\/p>\n

UBS is hoping to avert a contagion that could evoke comparisons with the crisis of 2008, when banks including Bear Stearns and Lehman Brothers collapsed. As of Friday’s close, UBS had a market cap of $57.9B, while Credit Suisse, which has seen its stock plunge 73% Y\/Y, finished the session with an $8.6B market value.[3]<\/a><\/sup> Talks are accelerating, and all sides are pushing for a quick solution to be announced by Sunday evening at the latest.[5]<\/a><\/sup><\/p>\n

0. <\/span>“UBS offers up to $1 billion to rescue Credit Suisse: report” Business Insider, 19 Mar. 2023, https:\/\/www.businessinsider.com\/credit-suisse-ubs-offers-up-to-billion-rescue-deal-report-2023-3<\/a><\/a><\/p>\n

1. <\/span>“Credit Suisse: Bank of England won\u2019t object to takeover as UBS considers $1bn bid” The Guardian, 19 Mar. 2023, https:\/\/www.theguardian.com\/business\/2023\/mar\/19\/credit-suisse-bank-of-england-wont-object-to-takeover-as-ubs-considers-1bn-bid<\/a><\/a><\/p>\n

2. <\/span>“Switzerland mulls nationalization of Credit Suisse as UBS\u2019s $1 billion offer deemed too low” Fortune, 19 Mar. 2023, https:\/\/fortune.com\/2023\/03\/19\/switzerland-mulls-nationalization-of-credit-suisse-as-ubs-1-billion-offer-deemed-too-low\/<\/a><\/a><\/p>\n

3. <\/span>“UBS said to be in talks to take over embattled lender Credit Suisse: Report” Seeking Alpha, 19 Mar. 2023, https:\/\/seekingalpha.com\/news\/3948695-ubs-said-to-be-in-talks-to-take-over-embattled-lender-credit-suisse-report<\/a><\/a><\/p>\n

4. <\/span>“UK regulators back merger of banking giants Credit Suisse and UBS” Sky News, 19 Mar. 2023, https:\/\/news.sky.com\/story\/uk-regulators-back-merger-of-banking-giants-credit-suisse-and-ubs-12837876<\/a><\/a><\/p>\n

5. <\/span>“UBS faces pushback after offering to buy Credit Suisse for $1 billion” Fortune, 19 Mar. 2023, https:\/\/fortune.com\/2023\/03\/19\/ubs-faces-pushback-after-offering-to-buy-credit-suisse-for-1-billion<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2641,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2642"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2642"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2642\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2641"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}