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Washington: Credit Suisse is pushing back on a takeover offer from UBS, Bloomberg News reported on Sunday, after after it was said that UBS Group had offered up to $1 billion.
The troubled Swiss firm is pushing back with backing from its biggest shareholder.
On March 17, Credit Suisse ended with a market value of about 7.4 billion francs. It believes the offer from UBS Group is too low and would hurt shareholders and employees who have deferred stock, according to people with knowledge of the matter, Bloomberg reported.
On Sunday, the UBS offer was communicated at 0.25 francs a share to be paid in stock.
According to the Financial Times, the group insisted on a material adverse change that voids the deal if its credit default spreads jump by 100 basis points or more.
Back on Friday, Credit Suisse closed down 8 per cent to 1.86 francs.
Authorities in Switzerland are attempting to mediate an agreement to resolve a crisis at Credit Suisse that during the last week sent shockwaves through the world financial system when scared investors ditched its shares and bonds after the failure of several smaller US institutions.
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