Credit Suisse Says It Will Turn Down UBS’ $1 Billion Offer

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UBS Group AG is offering to acquire Credit Suisse Group AG for up to $1 billion, a deal the struggling Swiss company is pushing back with support from its largest shareholder.

Credit Suisse, which ended Friday with a market value of about 7.4 billion francs ($8 billion), believes the asking price is too low and will hurt shareholders and employees who bought the shares to pay. slow, according to people knowledgeable about the matter.

The UBS offer was announced on Sunday at a price of 0.25 francs a share paid in shares. UBS also highlighted a key adverse change that would invalidate the deal if bad debt spreads spike by 100 basis points or more, the Financial Times reported. Credit Suisse closed down 8% to 1.86 francs late on Friday.

Swiss authorities are trying to broker a deal to resolve the Credit Suisse failure that sent shockwaves through the global financial system over the past week as panic-sold investors stock and bond devaluations following the collapse of several smaller U.S. lenders. A liquidity support measure by the Swiss central bank briefly halted the decline, but market drama carries the risk that customers or counterparties will continue to flee, with potential ramifications for whole industry.

The complex discussions about the first combination of two important banks in the global system since the financial crisis have seen Swiss and US authorities weigh in, according to the report. people with knowledge of the matter. Negotiations picked up pace on Saturday, with all parties pushing for a resolution that can be quickly implemented after a week that saw customers withdraw and partners withdraw from some deals translated with Credit Suisse.

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