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Credit Suisse crisis: BlackRock says 'not interested', no rival takeover bid in works

Times Now logo Times Now 18-03-2023 Times Now Digital
credit suisse crisis: blackrock says 'not interested', no rival takeover bid in works © Provided by Times Now credit suisse crisis: blackrock says 'not interested', no rival takeover bid in works

BlackRock has denied reports claiming that it is preparing to launch a takeover bid for Credit Suisse, according to a statement released by a company spokesperson on Sunday.

The spokesperson stated that the investment firm is "not participating in any plans to acquire all or any part of Credit Suisse, and has no interest in doing so."

The news comes after reports emerged over the weekend that BlackRock was considering various options to upstage a plan for UBS to acquire the struggling bank.

The US investment firm had reportedly informed Credit Suisse of its intentions, as the bank engaged in advanced negotiations with UBS regarding a possible full or partial merger. Despite these reports, it is now clear that BlackRock has no plans to make a bid for Credit Suisse, which is currently facing significant challenges.

The troubled bank has just two days to reassure the markets before they open on Monday, with the specter of another turbulent week in global finance looming.

Credit Suisse has been holding crisis talks this weekend and urgent meetings with Swiss banking and regulatory authorities, after a turbulent week on the stock market forced the Swiss National Bank to step in with a $53.7 billion lifeline.

UBS-Credit Suisse deal

On Friday, the Financial Times reported that UBS was in talks to buy all or part of Credit Suisse, with the blessing of Swiss regulatory authorities. However, there is still no certainty that a deal will be reached, and any agreement would face significant regulatory obstacles in both Europe and the US.

While the Swiss Financial Market Supervisory Authority and the SNB have said that Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks," mistrust remains.

According to a report, the Swiss National Bank is urging Credit Suisse and UBS to come to a straightforward solution before the markets open on Monday. UBS is reportedly assessing the potential risks of a full or partial acquisition of Credit Suisse.

On Wednesday, Credit Suisse shares hit a record low after its main shareholder, Saudi National Bank, declined to increase its stake in the group due to regulatory limitations. The chairman of Saudi National Bank, Ammar Abdul Wahed Al Khudairy, confirmed that the bank will not provide any further assistance to Credit Suisse. It is worth noting that Saudi National Bank is 37% owned by the country's sovereign wealth fund.

On the same day, the Swiss National Bank provided a $53.7 billion lifeline to support the group. The idea of the two largest banks in Switzerland merging has been considered multiple times but has been dismissed due to concerns about competition and the potential risks to the stability of the Swiss financial system because of the size of the resulting entity.

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