SNB Offers UBS $100 Billion In Liquidity For Credit Suisse Acquisition
WSJ reported that the Swiss National Bank had offered UBS Group AG approximately $100 billion in liquidity to support its acquisition of Credit Suisse Group AG’s operations. The terms of the liquidity offer have not been disclosed, but sources say that it is a part of the ongoing negotiations for the takeover of Credit Suisse.
According to The Kobeissi Letter, UBS has reportedly agreed to acquire Credit Suisse for over $2 billion, which is a significant increase from their initial offer of $0.27 per share.
This deal came to fruition over the last 48 hours.
Markets have yet to react to the announcement, but it would officially make $CS a penny stock.
Shareholders will to be very disappointed if this goes through.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) March 19, 2023
However, this offer would still only pay shareholders $0.54 per share, a 73% discount from Friday’s closing price. The deal was made in the last 48 hours, but the market has yet to react. If the acquisition goes through, it would make Credit Suisse a penny stock, which could be disappointing news for shareholders.
According to Radar, although the Swiss National Bank incurred a loss of $143 billion last year, it has still provided a loan of $55 billion to Credit Suisse and offered UBS a liquidity of $100 billion to facilitate its acquisition of Credit Suisse.
‼️🇨🇭 Swiss National Bank lost $143 BILLION last year…
But just gave Credit Suisse a $55 BILLION loan.
…and another $100 BILLION in liquidity for UBS to takeover Credit Suisse. 🤔 pic.twitter.com/kFklvcQI3u
— Radar🚨 (@RadarHits) March 19, 2023
As previously reported by Coincu, Tron founder Justin Sun proposed an alternative bid of $1.5 billion to acquire Credit Suisse and integrate it into the world of Web 3.0, instead of UBS’s bid which he believed was insufficient. Sun emphasized Switzerland’s leadership in embracing cryptocurrencies and blockchain technology and sees the future of finance in these technologies.
He envisions a financial system that is more decentralized and innovative, and believes that integrating Credit Suisse into a crypto-friendly financial institution is a step towards that direction.
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