Swiss bank UBS will buy Credit Suisse for more than $2 billion (about 1.870 million euros) after tense negotiations, the Financial Times and Bloomberg reported this Sunday.
The weekend talks involved the two banks, the government, the central bank and the regulator.
As part of the agreement, the parties agreed to change the law to prevent this purchase decision from being put to a vote by UBS shareholders, according to a newspaper source quoted by EFE.
According to the paper, also quoted by AFP, UBS agreed to double the amount it originally offered to exceed the reserves placed by Credit Suisse and one of its major shareholders.
As a result of the deal, Credit Suisse shares will be valued at 50 cents instead of the originally offered 25 cents, which remains well below the value of the bank’s shares at Friday’s close of 1.86 Swiss francs.
The federal government is reviewing the deal and should brief the parties involved, and a press conference is expected to follow to reveal the details of the deal.
In recent days, Credit Suisse has seen a strong drop in the stock market: on Friday it lost 8%. Over the week, a decline of more than 25% has accumulated.
Author: Portuguese
Source: CM Jornal
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.