According to the Financial Times, Swiss bank UBS has offered to buy troubled Credit Suisse for up to $1 billion. However, Credit Suisse believes the offer is far too low; sources told Bloomberg.
The Swiss authorities are therefore planning to change laws to circumvent the vote of the shareholders on the transaction.
According to the Financial Times, this should guarantee that the operation will be completed by Monday. The transaction between the two banks must be signed by Sunday evening. The amount accounts for only a small portion of Credit Suisse’s closing price on Friday, leaving shareholders with nothing. UBS offers 25 centimes per share, payable in USB shares. On Friday, Credit Suisse shares closed at 1.86 Swiss francs.
Besides a takeover by UBS, a (full or partial) nationalization of Credit Suisse would be the only other viable option, a scenario that the Swiss government would now consider. Insiders report this to Bloomberg.
Switzerland’s bank employees’ union demanded the participation of social partners in talks on Credit Suisse on Sunday, citing the “enormous” stakes for employment. Sector association Aseb (Association Suisse des employés de banque, ed.) “demands the immediate involvement of a task force”, a team that focuses on the “jobs” that are “at risk”, the union says in a statement.
“No decision should be taken before the social partners are involved” in the talks, Aseb added. “What is happening is huge for the approximately 17,000 employees of Credit Suisse in Switzerland,” the union emphasizes.