Credit Suisse UBS Deal: Credit Suisse is one of the oldest banks in Europe. Although the history of more than 165 years of the bank has become lighter in front of the current banking crisis. Now the condition is that the time has come to sell this bank which has business in many countries of the world. Interestingly, the price it has been offered is many times less than the current value.
The offer is so low
Switzerland’s another major to buy Credit Suisse Bank UBS has given the offer. UBS’s offer is up to $1 billion. If you look at this offer made on Sunday morning, it sits around $ 0.27 i.e. 0.25 Swiss franc for each share of Credit Suisse. On the other hand, on Friday, Credit Suisse’s stock closed at 1.86 Swiss Franc. This means that Credit Suisse has been offered less than 7.5 times the current share value.
The law is changing
According to a recent report in the Financial Times The offer made by UBS is an all-share deal between two of Switzerland’s biggest banks. The deal is expected to be signed soon. If this deal is implemented, then it will bring many important changes for both the banks. To speed up the deal, the Swiss government is also going to change the country’s law, so that it can be avoided the necessary condition of shareholders’ vote.
Pressure for a quick solution
Let us tell you that Credit Suisse is facing challenges these days. This bank has come under the grip of the banking crisis that started from America, after which it is facing volatility and a decrease in the confidence of depositors. This bank has been counted among the most important banks in the world for years. This is the reason that there is pressure on the bank to find a quick solution from the regulators and authorities.
So old is the history
Credit Suisse is about 167 years old bank. It is being said that if the proposed deal between UBS and Credit Suisse goes through, thousands of people may have to be unemployed. On the other hand, the process of selling Silicon Valley Bank is going on in America, for which First Citizens has made an offer. The current banking crisis started with the collapse of Silicon Valley Bank.
Also read: Once there was wealth in billions, now this fugitive businessman has only Rs 236 in his bank account
Get the more latest Business news updates