Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Credit Suisse shares slip on skepticism about U.S. takeover offer

Published 06/09/2022, 03:44 AM
Updated 06/09/2022, 05:16 AM
© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters at the Paradeplatz square in Zurich, Switzerland October 1, 2019. REUTERS/Arnd Wiegmann

MILAN (Reuters) - Credit Suisse shares fell on Thursday on growing skepticism about a takeover offer from U.S. financial giant State Street (NYSE:STT) after a media report a day earlier boosted the heavily-shorted stock from a near 20-year low.

State Street said overnight it was focused on the pending acquisition of Brown Brothers Harriman's Investors Services business, after Wednesday's report by Inside Paradeplatz saying it was planning a takeover bid.

The lack of any confirmation drove shares in Credit Suisse further down from highs hit on Wednesday. By 0852 GMT they had fallen 1.7%, underperforming Europe's broader market which was down 0.4% ahead of a European Central Bank policy meeting.

Analysts see any takeover as highly unlikely because of limited synergies and a number of risks ranging from capital costs to litigation. One area of potential interest for State Street could be the asset management business, said Deutsche Bank (ETR:DBKGn).

The deal speculation comes as Credit Suisse delivered a third consecutive quarterly profit warning.

Reuters reported last year that State Street was among investors interested in Credit Suisse's asset management arm, as the Swiss lender explored options for the unit after a run of costly scandals.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.