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UBS agrees to buy Credit Suisse for more than $2 billion - FT

Published 03/19/2023, 01:04 PM
Updated 03/19/2023, 01:15 PM
© Reuters. The logo of Credit Suisse is pictured in front of the Swiss Parliament Building, in Bern, Switzerland, March 19, 2023. REUTERS/Denis Balibouse

(Reuters) -UBS has agreed to buy Credit Suisse after increasing its offer to more than $2 billion, the Financial Times reported on Sunday.

UBS will pay more than 0.50 francs ($0.5401) a share in its own stock, far below Credit Suisse’s closing price of 1.86 francs on Friday, FT reported, citing sources.

The Swiss National Bank has agreed to offer a $100 billion liquidity line to Credit Suisse as part of the deal, the FT added, citing two people familiar with the matter.

According to the report, UBS has agreed to a softening of a material adverse change clause that would void the deal if its credit default spreads jump.

Credit Suisse and UBS declined to comment.

($1 = 0.9258 Swiss francs)

Latest comments

Bizarre what is happening because banks were supposed to do better in a higher interest rate environment.  Decades of increased financial and banking regulation and we still have this mess. Maybe the problem is having a system designed and run by the government.  We need less government and real free markets.  Let them fail, that is how businesses and consumers learn, and will allow the best companies to rise to the top.
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