UBS Makes  Billion Offer for Credit Suisse, Says Financial Times

UBS Makes $1 Billion Offer for Credit Suisse, Says Financial Times

The government of Switzerland has been holding meetings to prevent a further decline of Swiss Credit as the situation in the stock market became complicated last Friday, despite a loan of over 50,000 million euros approved by regulators to cushion the blow. It is rumored that UBS, a potential acquiring entity, has asked the Swiss government for guarantees that a partial or complete acquisition of its rival will not cause legal problems or losses. However, the Swiss Association of Bank Employees demands the creation of a working group to address the issues of job loss before any decision is taken for the acquisition. The Swiss govt is racing against time to find a solution before the Swiss stock market opens on Monday. Various media outlets suggest that Swiss authorities are likely to take over Credit Suisse, full or partially. The risk of duplication is significant as profiles of UBS and Credit Suisse are similar. The possibility of a takeover by UBS was raised last Thursday after a historic drop in the share price. Shares of Credit Suisse fell to a record low on Wednesday at a time of stock panic over fears of contagion from the recent bankruptcy of US bank SVB. Swiss central bank had thrown Credit Suisse a lifeline by making up to 50 billion francs available. But after a brief respite, shares fell again on Friday.

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