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The Financial Times has reported that UBS is currently involved in talks to acquire part or all of embattled Credit Suisse. The Times’ sources reportedly include “multiple people briefed on the talks” who claimed that Switzerland’s central bank and financial regulators initiated the discussions in hopes that the acquisition might restore public confidence in the nations’ banking industry.
The move comes on the heels of the Swiss National Bank’s decision to provide Credit Suisse with a $54 billion line of emergency credit. When the loan announcement failed to stabilize the bank’s share price, the central bank quickly moved to push for acquisition negotiations.
According to the report, Swiss National Bank has urged both UBS and Credit Suisse to come to a “simple and straightforward” agreement over the weekend. However, the sources apparently confirmed that there the outcome of the talks cannot be guaranteed. In addition, any proposed deal would have to obtain approval from UBS shareholders.
There has been no confirmation from UBS or Credit Suisse on the reported negotiations. The Swiss National Bank, Bank of England, and Federal Reserve also appear to have declined to comment.
In related news, a spokesperson for BlackRock has denied a recent report suggesting that the firm was preparing its own acquisition offer for Credit Suisse. That spokesperson said that BlackRock has no interest in pursuing such an acquisition.
