Banks. UBS wants to buy Credit Suisse, but for cheap
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Switzerland’s largest bank UBS, pushed by the authorities, is ready to buy its rival Credit Suisse, but at only a fraction of its value, claims the Financial Times. But time is running out to avoid a debacle and a wave of contagious panic on the markets on Monday.
According to the British daily, UBS would be willing to pay just $1 billion (930 million euros). An offer rejected by Credit Suisse with the support of its main shareholder the Saudi National Bank, according to Bloomberg.
The transaction would be made only in shares, explains the Financial Times at a price of 25 cents per Credit Suisse share, when it was still worth 1.86 francs at the close of Friday, i.e. a total valuation of just under 9 billion.
The transaction has been examined in Bern by the federal government since the beginning of the morning, already meeting urgently on Thursday and Saturday.
According to the tabloid Blick, it is in the federal capital that the agreement must be sealed again this Sunday during an extraordinary meeting of federal advisers and leaders of the two banking giants.
The merger between these banking giants, which are both part of the very closed club of 30 banking institutions that are too important for the global financial system to let them sink, must in any case be finalized before the stock market opens at 8 GMT hours on Monday, to avoid a wave of panic.
“No risk of contagion” in France
The president of the French Banking Federation, Philippe Brassac, assured on Saturday that the current global banking turmoil, which is hitting Credit Suisse in particular in Europe, did not risk contaminating the banking sector in France.
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