According to FT’s sources, the offer was communicated with a price of 0.25 Swiss francs (36 cents) a share to be paid in UBS stock, far below Credit Suisse’s closing price of 1.86 Swiss francs. “UBS has also insisted on a material adverse change that voids the deal if its credit default spreads jump by 100 basis points or more,” they added.
UBS has offered to buy Credit Suisse for up to US$1 billion ($1.34 billion), reports Financial Times on March 19. The FT report says Swiss authorities are planning to change the country’s laws to bypass a shareholder vote on the transaction, in order to finalise a deal before March 20.
The all-share deal between Switzerland’s two biggest banks is set to be signed as soon as the evening of March 19, according to FT’s journalists in London. It will be priced at a fraction of Credit Suisse’s closing price on March 17, says FT, citing four people with direct knowledge of the situation.
