UBS reviewed CS takeover last fall

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The UBS board has been grappling with a possible takeover of troubled Credit Suisse for the past year. Such a step was initially rejected by the board as “undesirable”, but as can also be seen from a UBS document submitted in the US, initial preparations for such a scenario were made.

According to the acquisition prospectus, which was presented to the SEC last week and appeared in various media outlets, the UBS board strategy committee followed developments in CS from October 2022 to February 2023. At the beginning of December 2022, the committee prepared a preliminary assessment of the CS acquisition, taking into account developments in its Swiss competitor in crisis.

The effects of resolution were also examined

According to the document, at meetings in February 2023, both the strategy committee and the board concluded that the acquisition of CS was undesirable, but that further analysis was required. From January 2023 to mid-March 2023, teams of UBS staff, external legal counsel and Morgan Stanley advisors prepared a financial analysis.

Possible legal structures and measures were developed in case the Swiss government asked UBS to take over CS. Possible adverse effects on UBS if CS were resolved were also examined.

UBS was formally asked about a possible CS acquisition during a meeting with representatives of the Swiss government, the Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority on Wednesday, March 15, 2023. The emergency takeover of CS, for which the federal government promised billions of dollars in guarantees and the SNB’s high levels of liquidity support, was agreed on March 19. (SDA/km)

Source :Blick