- According to the newspaper “Financial Times”, the major Swiss bank UBS is working on the partial or complete takeover of its ailing competitor Credit Suisse.
- As the US news service Bloomberg further reports, UBS has asked the Federal Council to hedge against possible risks should it take over Credit Suisse in whole or in part.
- The “Financial Times” also announced on Saturday that the fund manager Blackrock was working on a takeover bid for CS. However, the company denies this to SRF.
According to the Bloomberg post, in which the US media outlet cites people familiar with the matter, UBS is discussing scenarios to protect against possible legal costs and potential post-acquisition losses. UBS is currently examining a complete or partial takeover of its ailing competitor Credit Suisse.
The most likely scenario is that UBS will acquire Credit Suisse’s wealth and asset management units. The investment banking division, on the other hand, should be sold, according to an insider to Bloomberg.
“Financial Times”: SNB and Finma led talks
The talks between the two big banks UBS and Credit Suisse would lead the Swiss National Bank (SNB) and the Financial Market Authority (Finma), the Financial Times said on Friday evening. If the takeover were to take place, it would be Europe’s most momentous bank merger since the financial crisis.
The Swiss authorities informed their colleagues in the USA and Great Britain about the talks. Accordingly, a merger is the “ideal solution”, as an unknown source of the “Financial Times” explains. This should prevent a total loss of trust in Credit Suisse.
Separate board meetings over the weekend
The boards of directors of the two banks would meet separately over the weekend to discuss a possible merger. UBS would analyze the potential risks of such a transaction for its own business. The newspaper relies on people familiar with the matter.
Several options for a merger are on the table. It is also necessary to examine regulatory risks in different countries.
According to another media report, a takeover of Credit Suisse by UBS is more likely to be Plan B for the two banks: UBS and CS are against a merger, reported the US news agency Bloomberg on Thursday. Because UBS wants to concentrate on the previous strategy and is hesitant because of possible risks.
Banks, SNB and Finma are keeping quiet
The CS did not want to comment on the article in the “Financial Times” at the request of the news agency AWP. A spokesman for UBS only confirmed the statement made by CEO Ralph Hamers late on Friday evening, according to which UBS is concentrating on its own strategy.
UBS, the Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority (Finma) responded immediately to media inquiries on Saturday. “No comment,” it said from all sides. The Federal Department of Finance “does not comment on any rumours”, as a spokeswoman said on Saturday.
SNB injects 50 billion
The lurching big bank had recently suffered from a significant loss of investor confidence. The Swiss National Bank (SNB) then made loans of up to CHF 50 billion available to the institute.
The central bank, financial regulators and governments are also concerned with preventing a general banking crisis.