The Swiss bank UBS will buy Credit Suisse for more than two billion dollars (about 1,870 million euros), after intense negotiations, the Financial Times and the Bloomberg agency reported on Sunday.
The negotiations that took place over the weekend involved the two banks, the government, the central bank and the regulatory authority.
As part of the agreement, the parties agreed to a change in the legislation to prevent this purchase decision from being put to a vote by UBS shareholders, according to a source from the newspaper, quoted by the EFE news agency.
According to the newspaper, also quoted by AFP, UBS agreed to double the amount it had initially proposed, to exceed the reserves placed by Credit Suisse and one of its main shareholders.
The deal would value Credit Suisse’s share at a price of 50 cents, instead of the 25 cents initially proposed, which remains well below the bank’s market value at the close of the market on Friday (1.86 Swiss francs).
The federal government is reviewing the transaction and must inform the parties involved, with a press conference expected to reveal the details of the deal afterwards.
Credit Suisse has seen a sharp drop in the stock market in recent days, having closed on Friday losing 8%. Throughout the week it accumulated a decrease of more than 25%.
Source: TSF
