Report: UBS has agreed to buy Credit Suisse

Zurich / Bern

According to a report in the Financial Times, major Swiss bank UBS has agreed to buy Credit Suisse. The newspaper reported in the evening that UPS had previously increased its bid to more than $2 billion.

According to a report in the Wall Street Journal, the Swiss National Bank (SNB) is said to have offered UBS a liquidity line of about $100 billion as part of the deal.

The Financial Times reported that the Swiss authorities wanted to change the country’s laws to avoid shareholders voting on the deal. Because the transaction must be completed by Monday.

According to the “Financial Times”, the share deal is scheduled to be signed between the two largest Swiss banks on Sunday evening. It added that the price would be a fraction of Credit Suisse’s closing price on Friday, leaving Credit Suisse shareholders nearly empty-handed.

UBS will now pay more than CHF0.50 per share in the treasury stock, well below Credit Suisse’s closing price of CHF1.86 last Friday. UBS also agreed to weaken the clause stating that the contract would be void in the event of an increase in the so-called default spread. This relates to protection against default.

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