UBS takes over Credit Suisse for 2 Billion USD!
Today UBS took over Credit Suisse for 2 Billion Dollars. A forced merger by the Swiss government and the European Central Bank. Because they wanted things to be completed before the openof the Asian markets.
But that speed created victims, Credit Suisse was bought for 50 Eurocents per share. And at the time of the merger Credit Suisse was valued at 1,86 EUr per share. So UBS bought Credit Suisse with a 70 % discount. Which is a great deal for UBS but crap for the shareholders. They lose 70 % of their money above the losses they suffered in the last months.
A good deal for the banking system and the faith in the markets. But of course there are losers. And for them that sucks even more!
Hopefully some calm
Hopefully this deal has created enough calm in the markets in the coming days and weeks. Because otherwise it was a pretty shitty deal!
We shall see!