Media report: UBS increases purchase price to more than 2 billion dollars
According to a report in the Financial Times, the major Swiss bank UBS has agreed to buy Credit Suisse. UBS had previously increased its offer to more than $2 billion, the newspaper reported on Sunday evening.
According to a report in the Wall Street Journal, the Swiss National Bank (SNB) is said to have offered UBS a liquidity line of around USD 100 billion as part of the deal.
The Swiss authorities wanted to change the country’s laws to avoid a shareholder vote on the transaction, the Financial Times reported. Because the deal should be completed by Monday.
According to the “Financial Times”, the share package between the two largest Swiss banks should be signed on Sunday evening. The price will be a fraction of Credit Suisse’s closing price on Friday, leaving Credit Suisse shareholders virtually empty-handed, it said.
UBS will now pay more than 0.50 Swiss francs per share in treasury stock, well below Credit Suisse’s closing price of 1.86 francs last Friday. UBS also agreed to a weakening of the clause stating that the contract would be void in the event of an increase in so-called credit default spreads. This is about protection against a payment default.