UBS offers to buy Credit Suisse for up to $1 billion: Report

UBS has provided to purchase the troubled rival financial institution Credit score Suisse for as much as $1 billion, in response to a report by the Monetary Occasions on Sunday (March 19). The report stated that the proposed all-share deal between Switzerland’s two greatest banks is about to be signed as quickly as Sunday night. The deal will probably be priced at a fraction of Credit score Suisse’s closing value on Friday, it added. The troubled financial institution was valued on the equal of about $8 billion on the shut on Friday. 

UBS has been in talks to finalise a mammoth takeover of Credit score Suisse and reassure buyers earlier than the markets reopen on Monday. Switzerland’s banks have been in pressing negotiations all through the weekend, with the federal government, central financial institution, and monetary regulators all concerned.

A day again, the information company Reuters reported that UBS was looking for authorities ensures of about $6 billion for the takeover of Credit score Suisse. A supply instructed Reuters the ensures would cowl the price of winding down components of Credit score Suisse and potential litigation expenses. 

The supply added that talks to resolve the disaster of confidence in Credit score Suisse have been encountering important obstacles, and 10,000 jobs could must be minimize if the 2 banks mix. 

British banking watchdogs backing merger

A report by Sky Information earlier on Sunday that British banking watchdogs have been backing the merger of Credit score Suisse and UBS. The report stated that the Financial institution of England indicated to worldwide counterparts and to UBS that it’s going to assist the emergency transaction. 

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