Credit Suisse, twist. Bypassed the nationalization option
Ubs raises and hits Swiss credit. After the initial intentions of the Swiss state to totally or partially nationalize the bank on the verge of bankruptcy, Ubs relaunches after the initial offer of 1 billion and acquires Swiss credit for 3 billion.
For the operation, Ubs will disburse 3 billion Swiss francs in shares of the same Ubs. It makes it known Ubs in a statement. “The shareholders of Swiss credit – reads the note – they will receive 1 Ubs share for every 22.48 shares Swiss credit held, equal to 0.76 francs/share for a total consideration of 3 billion Swiss francs”.
The merger of the two businesses is expected to generate an annual cost reduction rate of more than $8 billion by 2027. Colm Kelleherthe current president of Ubswill be the president and Ralph Hammersthe current CEO of Ubsit will be there Ceo of the new entity.
The transaction is not subject to shareholder approval. UBS obtained pre-agreement from FINMA, the Swiss National Bank, the Swiss Federal Department of Finance and other key regulators on timely approval of the transaction.
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