BlackRock assembles rival Credit Suisse takeover bid
1 min read . Updated: 18 Mar 2023, 04:31 PM IST
PremiumBlackRock has assembled rival Credit Suisse takeover bid
BlackRock is working on a rival bid for Credit Suisse, aiming to upstage a plan for UBS to acquire the struggling bank, the Financial Times cited people with knowledge of the matter on Saturday. A Germany spokesperson of Credit Suisse has declined to comment on the report, the FT report added.
According to sources briefed on the matter, the US investment firm is considering various options and collaborating with other investors. BlackRock has informed Credit Suisse of its intentions, as Credit Suisse engages in advanced negotiations with UBS regarding a possible full or partial merger, the Financial Times report added.
However, there is no certainty that a deal will be reached, and any agreement would face significant regulatory obstacles in both Europe and the US. BlackRock might opt to bid solely for particular parts of the business.
According to an people familiar with the matter, BlackRock has been a significant client of Credit Suisse's investment banking services, specifically its fixed-income trading desk, for an extended period. This person suggested that an agreement, especially for Credit Suisse's US division, would provide a fortuitous opportunity to internalize trading capabilities.
The development comes as the troubled Credit Suisse has two days to reassure before the markets open Monday with the spectre of a new turbulent week in global finance looming.
The Zurich-based lender was holding crisis talks this weekend and urgent meetings with Swiss banking and regulatory authorities.
On Friday, the Financial Times reported that Switzerland's largest bank, UBS, is in talks to buy all or part of Credit Suisse, with the blessing of the Swiss regulatory authorities.
The Swiss National Bank (SNB) "wants the lenders to agree on a simple and straightforward solution before markets open on Monday", the source said, while acknowledging there was "no guarantee" of a deal.
When contacted by AFP, both SNB and Credit Suisse declined to comment, while UBS and Swiss financial watchdog FINMA did not respond immediately.
After a turbulent week on the stock market which forced the SNB to step in with a $53.7 billion lifeline, Credit Suisse was worth just over $8.7 billion on Friday evening.
But an acquisition of this size is dauntingly complex.
While the Swiss Financial Market Supervisory Authority and the SNB have said that Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks", mistrust remains.
