SNB Offers UBS $100 Billion In Liquidity For Credit Suisse Acquisition

Key Points:

• Swiss National Bank offers UBS Group AG about $100 billion in liquidity to support its acquisition of Credit Suisse Group AG’s operations.
• UBS reportedly agreed to acquire Credit Suisse for over $2 billion, a significant increase from their initial offer of $0.27 per share.

UBS has agreed to acquire Credit Suisse for over $2 billion, but shareholders may only receive $0.54 per share, a 73% discount from Friday’s closing price. Swiss National Bank has reportedly offered UBS $100 billion in liquidity for the 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.

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.

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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