UBS Group AG, Switzerland’s biggest bank, has offered to buy Credit Suisse for a price up to $1 billion, in an all-share deal priced at a fraction of Credit Suisse’s closing price on Friday. UBS has insisted on a “material adverse change” clause that would void the deal if Credit Suisse’s credit default spreads increase by 100 basis points or more. The Swiss government is planning to change the country’s laws to bypass a shareholder vote on the deal. UBS is examining a takeover of Credit Suisse that could see the Swiss government offer a guarantee against the risks involved. Credit Suisse has declined to comment on the matter, while UBS Group and the Swiss government have not responded to Reuters’ requests for comment.
Switzerland’s biggest bank, UBS Group AG, has offered to acquire Credit Suisse for a price up to $1 billion, according to a report by the Financial Times. The deal is set to be signed on Sunday evening and will be priced at a fraction of Credit Suisse’s closing price on Friday. The proposed deal will be an all-share deal, with UBS offering 0.25 Swiss francs ($0.27) per share to be paid in UBS stock. However, UBS has included a condition of a “material adverse change,” which would nullify the agreement if Credit Suisse’s credit default spreads increase by 100 basis points or more. The Swiss government is planning to change the country’s laws to bypass a shareholder vote on the deal. Two people with knowledge of the matter told Reuters that UBS is examining a takeover of Credit Suisse that could see the Swiss government offer a guarantee against the risks involved. Credit Suisse declined to comment on the matter, while UBS Group and the Swiss government have not responded to Reuters’ requests for comment.
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