Rumor has it that UBS will acquire Credit Suisse for $1 billion.


[Financial Channel/Comprehensive Report] In order to quickly resolve the Credit Suisse crisis, it was reported that Swiss Bank offered US$1 billion (approximately NT$30.6 billion) to acquire Credit Suisse.

"Financial Times" reported that people familiar with the matter said that UBS offered to acquire Credit Suisse at a price of 0.25 Swiss francs per share on the morning of the 19th, which was far lower than Credit Suisse's closing price of 1.86 Swiss francs last Friday (17th). The amount is about 1 billion US dollars.

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Switzerland wants to speed up UBS' takeover of Credit Suisse, with the two banks and their regulators rushing to finalize the deal before the market opens on Monday, people familiar with the matter said.

All agree, however, that the dynamics are changing rapidly and there is no guarantee that the terms of the merger will remain the same or that an agreement will be reached.

It is reported that the Swiss authorities plan to amend the law in order to bypass shareholders' voting rights in this merger case. Therefore, some people have criticized that the current merger terms are unfair to Credit Suisse and shareholders.

Linkages between the two banks are limited, with the merger framework devised by Swiss regulators hoping to provide maximum stability to the country's banking system, the people said.

Swiss authorities have received pre-approval from the U.S. Federal Reserve and relevant European regulators.

While the current terms value Credit Suisse at as much as $1 billion, the figure does not reflect the additional reserves the SNB will make to ensure the deal is done, the report said.

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