U.S.-based custodian giant State Street is reportedly planning a takeover of Credit Suisse by a possible share bid in the coming days.
State Street is planning a takeover bid for troubled Swiss lender Credit Suisse, according to a report by Swiss blog «Inside Paradeplatz» that cited a single, unnamed source.
Based on that report, the U.S. custodian is potentially planning to bid for Credit Suisse at 9 Swiss francs per share – a 30 percent premium compared to Tuesday’s closing price, which would value the bank at 23 billion francs ($23.5 billion).
Impending Job Cuts
«We are not going to respond to an earlier news report,» State Street said in a statement. «As we have previously discussed, we are focused on our pending acquisition of Brown Brothers Harriman’s Investors Services business.» Credit Suisse declined to comment.
On Wednesday, Credit Suisse’s made its third consecutive profit warning for this year when it indicated that it expects to lose money in the second quarter. A separate «Bloomberg» report citing unnamed sources said Switzerland's second-largest bank is expected to face headcount reductions as well.
Cuts in Both Divisions
The cuts are expected to be in both the investment banking and wealth management divisions across multiple regions, with the bank still finalizing decisions related to the total number of jobs to be affected.
