UBS makes an offer to acquire Credit Suisse for "significantly" more than $1 billion, according to sources

UBS makes an offer to acquire Credit Suisse for "significantly" more than $1 billion, according to sources:

 Following the greatest weekly decrease in Credit Suisse share price since the start of the coronavirus pandemic, a sale to UBS was announced.

This is in spite of the fact that it had previously stated it would obtain a loan from the Swiss central bank for up to $50 billion Swiss francs ($54 billion).

According to sources speaking to TECHNORTS ,Saad Ali  UBS, the largest bank in Switzerland, has started negotiations to acquire Credit Suisse, its troubled rival, for "significantly" more than 1 billion Swiss francs.

The initial $1 billion bid, which the FT revealed earlier on Sunday, has been significantly increased by UBS's agreement to purchase the bank for more than $2 billion, according to the Financial Times.

As the day's negotiations continued, according to Faber, the deal's price rose.

In UBS' initial offer, Credit Suisse reportedly objected,Nevertheless, people with knowledge of the situation told Bloomberg that they argued it was too low and would harm shareholders and employees.

When approached by TECHNORTS about the reports, Credit Suisse and UBS declined to comment.

In addition to the UBS merger, a Sunday Bloomberg article claims that Swiss authorities are also considering wholly or partially nationalising the bank.

According to persons with knowledge of the situation who spoke to Bloomberg, the UBS deal is being arranged rapidly, so the Swiss are preparing in case it fails. According to reports, the nation is debating whether it would take over the bank entirely or just own a sizeable portion of the equity.

After Credit Suisse shares experienced their greatest weekly loss since the start of the Notwithstanding a declaration that it will be able to borrow a loan from the Swiss central bank up to 50 billion Swiss francs ($54 billion), the coronavirus pandemic continues.

It has previously been dealing with a spate of failures and scandals, but last week's demise of Silicon Valley Bank and closure of Signature Bank in the US sent shares plummeting.

In comparison to American banks, Credit Suisse has a far larger scope and capacity to have a significant impact on the world economy. With 530 billion Swiss francs in assets as of the end of 2022, the Swiss bank's balance sheet is roughly twice the size it was when Lehman Brothers went bankrupt. As a result of its numerous worldwide subsidiaries and its global interconnectedness, it is even more important to handle Credit Suisse's situation in an organised manner.important.

In the fourth quarter of 2022, Credit Suisse lost about 38% of its deposits, and it reported in its annual report late this week that the outflows have not yet stopped. It announced a nett loss of 7.3 billion Swiss francs for the entire year of 2022 and projects another "substantial" loss for 2023.

With Credit Suisse veteran Ulrich Koerner becoming CEO in July, the bank had earlier promised a significant strategy revamp in an effort to solve these persistent problems.