UBS has agreed to buy Credit Suisse after increasing its offer to more than $2 billion following urgent talks today.
The banking giant will pay more than 0.50 francs ($0.5401) a share in its own stock, far below Credit Suisse’s closing price of 1.86 francs on Friday, FT reported, citing sources.
The agreement follows meetings earlier today in Bern between the Federal Council, the Swiss National Bank, UBS and Credit Suisse to settle the future of the bank.
Confirming the deal at a press conference this evening, Swiss Finance Minister Karin Keller-Sutter said: ‘The bankruptcy of a globally systematically important bank would have caused irreparable economic turmoil in Switzerland and throughout the world.
‘For this reason, Switzerland had to take the responsibilities beyond its own borders.
‘These efforts have paid off. The federal council is convinced that UBS’ takeover of Credit Suisse has laid the foundations for greater stability both in Switzerland and internationally.’
Investor confidence plunged following a string of scandals tied to the bank, and the separate collapse of Silicon Valley Bank on 10 March.
Read more: Switzerland’s largest bank UBS agrees to buy troubled rival Credit Suisse, Swiss authorities say – as the global market turmoil enters third week after collapse of SVB in the US