Credit Suisse’s share price is unwilling to soar despite all management’s assurances that the big bank’s bailout is on track. Even after the most recent drop amid rumors of Swiss financial market regulator Finma’s alleged investigation against Chairman Axel Lehmann, 64, the stock is only hesitantly walking away from the new record high.
The comments of David Herro (62) do not change this. The activist investor from Harris Associates is continually reducing its stake in CS and sees the bank as a competitive takeover target. “Six months ago I thought the bank was now a takeover candidate,” Herro was quoted as saying in the business newspaper “Finanz und Wirtschaft”.
What it speaks for: current share price. What goes against it: it’s also the current share price! Herro adds that the bank’s current share price is a bargain. True, CS has never been as cheap as it has been in the last few days. It remains unclear what Herro intended with his statements. Perhaps Harris Associates may also want to sell the last three to five percent of the Swiss bank, perhaps hoping the route will pick up again with the targeted spread of takeover rumors so that the investor’s loss can be contained.
Alone: Takeover fantasies continue on the stock market, and the stock fluctuates on Friday. No one seriously believes that CS was taken over by another bank. Even if the list of speculations goes on and on.
According to a report by the Bloomberg agency, Deutsche Bank took care of parts of the already sick large Swiss bank last fall. The German financial institution is said to analyze individual transactions such as asset management or asset management units in CS.
In banking circles, Morgan Stanley is also repeatedly traded as a possible CS interest. The US investment bank is one of the strongest market participants in asset management globally – but only does business in Asia and the US. With the acquisition of CS, it could also gain a foothold in Europe. The spicy detail: Morgan Stanley left the European asset management business 13 years ago. Buyer at the time: Credit Suisse.
One thing is clear: anyone who really wants to buy CS will face a huge mountain of problems and a lot of work. Even if the price is right, it’s doubtful whether the bottom line will actually pick up.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
On the same day of the terrorist attack on the Krokus City Hall in Moscow,…
class="sc-cffd1e67-0 iQNQmc">1/4Residents of Tenerife have had enough of noisy and dirty tourists.It's too loud, the…
class="sc-cffd1e67-0 iQNQmc">1/7Packing his things in Munich in the summer: Thomas Tuchel.After just over a year,…
At least seven people have been killed and 57 injured in severe earthquakes in the…
The American space agency NASA would establish a uniform lunar time on behalf of the…
class="sc-cffd1e67-0 iQNQmc">1/8Bode Obwegeser was surprised by the earthquake while he was sleeping. “It was a…