Crypto-friendly bank UBS Group AG is reportedly making an offer to buy global investment bank Credit Suisse with an increased offer of up to $3.2 billion.
After plunges in its shares and bonds raised concerns about a global banking crisis, the Swiss Central Bank on Thursday gave Credit Suisse $54 billion in relief. Analysts said this may not be enough.
UBS: A White Knight for Crypto?
UBS’s approach comes after BlackRock denied that a deal was in the works to rescue Credit Suisse. UBS is proposing a price of SFr0.25 per share to be paid in UBS stock. This is a significant discount from the price at which UBS stock closed on Friday, March 17 (SFR1.86).
Swiss authorities are considering changing their country’s laws. to bypass the vote of UBS shareholders on the proposed transaction as they rushed to finalize the transaction.
The agreement between the two leading financial institutions is expected to be formalized soon.
a liquid state
USB argues that there was an adverse change which rendered the transaction null and void. If the credit default swap has increased by at least 100 basis points. The position is fluid, there is no assurance that a similar position or deal will occur in the future.
It was decided not to proceed with the announcement. Because many felt it was an unfair arrangement for both Credit Suisse and the shareholders. Others were critical of the plan for UBS shareholders to circumvent procedures for corporate governance by avoiding voting.
lack of transparency
So far there has not been much communication between the two financiers. As a result, positions are subject to the influence of the Swiss National Bank and regulator FINMA. The United States Federal Reserve has the green light to proceed with the transaction.
UBS has big plans Reduce The size of the bank’s investment bank. Up to the point where the combined entity would account for more than one-third of the merged group. On the other hand, the business divisions of Credit Suisse still require clarification, and this phrase only describes a complete takeover of the group. There was no statement regarding UBS and the crypto offerings.
Meanwhile, despite the fact that the deal is worth one billion dollars, this amount does not take into account the additional provisions that the Swiss National Bank has included to ensure that the transaction is successful in rescuing Credit Suisse. will be completed.
Credit Suisse: A Crypto-Friendly Bank?
Tron co-founder Justin Sun has offered to buy Credit Suisse and integrate it into the nascent Web 3 world.
His plan seeks to transform Credit Suisse into a crypto-friendly bank. Thus paving the way for a financial system that is both decentralized and secure.
“I’d like to propose my own offer of $1.5 billion to acquire Credit Suisse. And integrate it into the Web 3.0 world,” tweeted Sun on Sunday, pointing to Switzerland’s crypto-friendly regulations. . “We can leverage the country’s progressive policies to position ourselves as a financial innovation leader.”
UBS has agreed to buy Credit Suisse for more than $2 billion, making it one of the latest financial institutions to be bailed out following the failures of Silicon Valley Bank and Signature Bank in the US earlier this month. The bank had a market capitalization of over $7 billion at the end of trading on Friday, according to data from TradingView.
However, it is not clear on Twitter whether Sun was serious about his offer. Or whether Swiss regulators will consider it, they have a history of floating offers for deals that don’t materialize. Sun indicated in January that it was prepared to pay up to $1 billion for the assets of Digital Currency Group.
Sun also said last year that it was willing to invest up to $5 billion in troubled crypto companies.
Credit Suisse and the Swiss financial market supervisory authority FINMA have not issued official statements on Sun’s offer. Perhaps it shows that they do not take his offer seriously.
“We can create a new standard for financial innovation that benefits everyone. By acquiring Credit Suisse and transforming it into a crypto-friendly financial institution,” Sun wrote.
While many would love to see private takeover of troubled banks. Perhaps the time is not right for another “crypto bro” to be front and center regarding a major bank buyout. The FTX disaster in particular is still top of mind.
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