Credit Suisse will ‘reject’ UBS offer
Washington: Credit Suisse rejects a takeover bid from UBS, Bloomberg News reported on Sunday, after it was reported that UBS Group had offered up to $1 billion.
The struggling Swiss company pushes back with the support of its largest shareholder.
On March 17, Credit Suisse ended with a market value of around 7.4 billion francs. He believes the UBS Group’s offer is too low and would hurt shareholders and employees who have deferred shares, according to people with knowledge of the matter, Bloomberg reported.
On Sunday, UBS’s offer was communicated at 0.25 francs per share to be paid in shares.
According to the Financial Times, the group insisted on a material adverse change that voids the deal if its credit default spreads increase by 100 basis points or more.
On Friday, Credit Suisse closed down 8% at 1.86 francs.
Swiss authorities are trying to broker a deal to resolve a crisis at Credit Suisse which last week sent shock waves through the global financial system when frightened investors dumped its stocks and bonds after several smaller institutions went bankrupt Americans.
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