Europe News Desk!!! The Swiss federal government has announced that Credit Suisse will be acquired by Swiss banking giant UBS. Friday’s cash outflows and market volatility showed that it is no longer possible to restore confidence and a swift and stable solution is urgently needed, Xinhua news agency quoted the government as saying. The government on Sunday said, in this difficult situation, the acquisition of Credit Suisse by UBS is the best solution to restore the recently eroded confidence in the financial markets and to best manage the risk for our country and its citizens. Under the terms of the share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76/share, for a total consideration of CHF 3 billion. UBS said this in a statement on Sunday. The combination is expected to create a business of over $5 trillion, the statement said. The Swiss National Bank (SNB) will provide substantial liquidity support to support UBS’s acquisition of Credit Suisse, the Swiss central bank said in a statement on Sunday. The acquisition has been made possible with the support of the Swiss federal government, the Swiss financial market supervisory authority FINMA and the SNB, the statement said. With the acquisition of Credit Suisse by UBS, it is important to secure financial stability and secure financial stability in this exceptional situation, the statement said. The situation has a solution to protect the Swiss economy.
–IANS
World News Desk!!
cbt