The crypto-friendly bank UBS Group AG is purportedly making an offer to purchase the global investment bank Credit Suisse with an increased offer of $3.2 billion dollars.
After a drop in its shares and bonds raised concerns about a global banking crisis, the Swiss central bank gave Credit Suisse a $54 billion reprieve on Thursday. Analysts said that may not be enough.
UBS: A White Knight for Crypto?
The approach from UBS comes after BlackRock rejected that there was a deal in the works to save Credit Suisse. UBS is proposing a price of SFr0.25 per share to be paid in UBS stock. This is a significant discount to the price at which UBS stock closed on Friday, March 17 (SFr1.86).
Swiss authorities are looking into changing the laws of their country. In order to circumvent the vote of UBS shareholders on the proposed transaction as they rush to finalize the transaction.
The agreement between the two major financial institutions is expected to be formalized soon.
A Fluid Situation
UBS contends that there was an adverse change that rendered the deal null and void. If the credit default swaps increased by at least one hundred basis points. The situation is fluid, with no assurance that the same conditions or a deal will be reached in the future.
It was decided not to go ahead with the announcement. Because many people felt that it was an unfair arrangement both to Credit Suisse and the shareholders. Others were critical of the plans to circumvent procedures for corporate governance by avoiding a vote by UBS shareholders.
A Lack of Transparency
There hasn’t been much communication between the two financiers up until this point. As a result, the conditions have been subject to influence from the Swiss National Bank and
Go to Source to See Full Article
Author: Jay Speakman
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
