Switzerland may consider nationalizing Credit Suisse if UBS takeover fails

The Swiss government is considering taking over all or most of the troubled Credit Suisse bank if an agreement cannot be reached with the UBS bank. This was reported by the business news agency Bloomberg. Earlier this morning, Credit Suisse reportedly rejected UBS’s takeover offer.

For days, Switzerland’s two largest banks have been negotiating with each other and the Swiss government about a possible takeover. According to the Financial Times, UBS offered $1 billion today to buy Credit Suisse, but Credit Suisse would not agree.

Some of those involved told the newspaper that the terms of the takeover were unfair for Credit Suisse and there were criticisms of possible circumvention of takeover laws. The Swiss government is reportedly planning to amend the law so that UBS shareholders’ approval is not required. They should normally have six weeks to consider the takeover.

Credit Suisse closed Friday with a market capitalization of 7.4 billion Swiss francs, approximately $8 billion. So what UBS has to offer is just a fraction of that.

Insiders told Bloomberg that Credit Suisse thought the offer was too low. According to sources, this would also be at a disadvantage for shareholders and employees who are still eligible for the payment of shares.

50 billion credits

Credit Suisse is in big trouble and lost a quarter of its value last week. Credit Suisse has borrowed over 50 billion euros from the Swiss central bank to stay afloat. This loan did not prevent the bank’s share prices from falling further and bank customers withdrawing their money en masse.

Credit Suisse was shaken by the bankruptcy of US banks Silicon Valley Bank and Signature Bank. The bankruptcy of these banks and the problems in Credit Suisse caused great turmoil in the financial markets.

Source: NOS