Posted on 03/19/2023 5:36:07 AM PDT by Oldeconomybuyer
March 19 (Reuters) - UBS Group AG has offered to buy Credit Suisse for up to $1 billion, with the Swiss government planning to change the country's laws to bypass a shareholder vote on the transaction, the Financial Times reported on Sunday.
The proposed all-share deal between Switzerland's two biggest banks is set to be signed as soon as Sunday evening, the report said...
(Excerpt) Read more at finance.yahoo.com ...
So pennies on the dollar? Fractions of pennies?
We don’t know (yet) what kind of liabilities UBS will be assuming...so it may not be pennies on the franc after all is said and done.
Thirty cents per share is probably over-paying for a worthless stock... CS should take the money and run.
Sounds like a pretty bad deal - for UBS. Sure, it’s a better deal than buying it on the open market, but it’s a shotgun marriage, and I’m not sure it recognizes the risks.
Doesn't sound like any real money is involved.
Mebe I can move my money to a nice, stable, Russia bank........
Why shouldn’t the shareholders vote if they’re the owners?
(Credit Suisse)
And here I was gonna offer $1 for Credit Suisse. Oh and with a box of chocolates.
CHEAP chocolates.
You know, life is like........
“Why shouldn’t the shareholders vote if they’re the owners?”
Calvin Ball
I was just reading that the UBS deal doesn’t look like it’s happening.
That will not be good for the markets tonight.
Gold went up a bunch last week. If CS isn’t bailed out, we will see $2100 gold easy.
Euro down-low depositors, venned over into shareholders, have their feet in both banks. If UBS pulls it off it takes a little bit of piss out of the markets, as UBS knows contagion could come for them next.
UBS buys it for about 25 cents on the dollar. AND the Swiss guarantee $100B in liquidity.
I am sure the Saudis are going to love their haircut.
Actually the bondholders own the company. Equity is lower in the capital structure. It’s worthless if the company declares bankruptcy.
It’s Happening . . .
Banking giant UBS is buying its smaller rival Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss President Alain Berset announced on Sunday night.
The Big Pink. - Dominos
5.56mm
Patrick Boyle:
“After a weekend of intense negotiations, Swiss authorities brokered an emergency deal to sell Credit Suisse the troubled 167-year-old investment bank to its Swiss rival, UBS. A $54bil lifeline from the Swiss National Bank last week failed to stem the crisis facing Credit Suisse following Silicon Valley Bank’s collapse: its share price collapsed and the flight of deposits accelerated. The deal has prevented a globally important bank from failing.
Under the terms of the deal, Credit Suisse’s additional tier 1 (AT1) bonds were written down to zero while shareholders received $3.25bn. In today’s video we discuss whether that is fair and who owned those bonds.”
https://www.youtube.com/watch?v=hV0gpO1B6tU
Unbelievable. The preferred asset class is going to suffer because of this.
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