UBS offered up to a billion dollars, some 941 million euros, for Credit Suisse, reports the Financial Times on Sunday, adding that the Swiss authorities are considering changing the legislation to avoid a shareholder blockade.
According to the British newspaper, the agreement between the two banks should be signed tonight, before the market opens on Monday, at a price of 0.25 Swiss francs per share (the same amount in euros) to be paid in UBS shares, well below the CHF1.86 with which the bank closed the session on Friday.
However, according to Bloomberg, Credit Suisse executives rejected the initial offer as too low.
The Financial Times indicates that UBS insisted on a clause that provides for the cancellation of the agreement in the event of “a material adverse change.”
Sources heard by that outlet point out, however, that the situation is evolving rapidly and there is no guarantee that the terms of the agreement will be maintained or even that an agreement will be reached.
He also explains that some consider these terms unfair to Credit Suisse and its shareholders, while others criticize plans to repeal current corporate governance rules, preventing UBS shareholders from voting.
There will have been “limited contact” between the two creditors and the terms will have been “heavily influenced” by the Swiss National Bank and the regulator, with the US Federal Reserve (Fed) giving its consent.
The Swiss National Bank promised early this Thursday morning to grant aid of 50,000 million francs (50,600 million euros) to Credit Suisse, after a week of strong turbulence.
Source: TSF
