Credit Suisse, UBS held tie-up talks backed by both chairmen: Bilanz

Stock Market
2/2 © Reuters. FILE PHOTO: Logo of Swiss bank UBS is seen in Zurich © Reuters. FILE PHOTO: Logo of Swiss bank UBS is seen in Zurich 2/2

ZURICH (Reuters) – The chairmen of UBS (S:) and Credit Suisse (S:) supported a merger of equals between Switzerland’s two largest banks during discussions earlier this year, Swiss magazine Bilanz reported on Wednesday, adding talks had since stagnated.

The details reported by finance periodical Bilanz suggest that a merger between Credit Suisse and UBS, which had been examined by staff working under UBS chairman Axel Weber in recent months, had been more seriously considered than previously known, receiving backing from both parties.

UBS declined comment. Credit Suisse did not immediately respond to a request for comment.

Switzerland’s two biggest banks held tie-up negotiations in the first half of the year, Bilanz reported, citing two unnamed sources involved in the discussions.

Although kept secret, a merger had been considered seriously, one source told Bilanz, receiving the backing of both UBS Chairman Axel Weber and Credit Suisse Chairman Urs Rohner, who is due to retire from his post in 2021.

However, discussions had dropped off since the summer holidays, one source told Bilanz, amid a drop in Credit Suisse’s share price placing the banks’ respective valuations beyond the merger of equals threshold.

Reuters reported last week that the board of UBS had gathered to discuss strategy, but a merger with Credit Suisse was not on the official agenda, suggesting cooling interest in the idea.

Both chief executives of UBS and Credit Suisse expressed expectations of an up-tick in consolidation within Europe’s banking sector at a conference on Tuesday, with UBS CEO Sergio Ermotti calling more deals “inevitable”.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Stock Market News

Leave a Reply

Your email address will not be published. Required fields are marked *