UBS offers to buy Credit Suisse for up to $1 billion: report

UBS Group AG has made an offer to buy Credit Suisse for up to $1 billion, the Financial Times reported on Sunday, with the Swiss government planning to change the country’s laws to bypass a shareholder vote on the deal.
The proposed all-share deal between Switzerland’s two biggest banks is set to be signed on Sunday evening, the report said, adding that the deal would be priced at a fraction of Credit Suisse’s closing price on Friday.
A share was paid for on Sunday morning with a price of 0.25 Swiss francs ($0.27). UBS stock, the newspaper said, citing people familiar with the matter. Shares of Credit Suisse closed at 1.86 Swiss francs on Friday.
The report said that UBS has also insisted on a ‘material adverse change’, which calls for cancellation of the deal in the event of an increase in the credit default spread by 100 basis points or more.
Credit Suisse declined to comment, while ubs group And the Swiss government did not immediately respond to a Reuters request for comment.
Two people with knowledge of the matter told Reuters on Saturday that UBS is examining a takeover of Credit Suisse, with the Swiss government likely to offer guarantees against the risks involved.

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