FT: UBS Proposes to Acquire Credit Suisse for a Maximum of $1 Billion

According to the Financial Times, UBS Group AG has proposed to acquire Credit Suisse for a maximum of $1 billion, and the Swiss government intends to modify the country's legislation to avoid a shareholder referendum on the agreement.

According to a report, the two major banks in Switzerland are planning to finalize a deal using shares only, which may take place as early as Sunday evening. The report mentions that the deal's cost will be much lower compared to the final price of Credit Suisse on Friday.

According to insider sources, on Sunday morning there was a proposal of 0.25 Swiss francs per share ($0.27) offered to be paid in UBS stock. This information was reported in the newspaper. On Friday, Credit Suisse's shares concluded at a price of 1.86 Swiss francs.

According to the report, UBS has also requested a condition that cancels the agreement if its credit default spreads increase by 100 basis points or more.

Credit Suisse chose not to give any statement, while UBS Group and the Swiss government did not respond immediately when Reuters asked for their comments.

According to two sources who spoke with Reuters on Saturday, UBS is considering taking over Credit Suisse and the Swiss government may provide a safeguard against any potential hazards.

The exchange rate between the US dollar and the Swiss franc is currently at $1 to 0.9258 Swiss francs.

Written by Akriti Sharma in Bengaluru; Revised by David Goodman, Kirsten Donovan