Skip to main content

Credit Suisse's capital injection.


 According to people with knowledge of the talks, the Qatar Investment Authority plans to increase its stake in Credit Suisse by investing in a share sale alongside Saudi National Bank.

The deal will result in up to a quarter of Credit Suisse stock owned by Middle Eastern investors as the scandal-plagued lender seeks to raise SFr4bn to fund a radical restructuring.

Last week, the Swiss bank announced that it would strip back and spin off its investment bank, reduce its global workforce by 9,000 and cut SFr2.5bn of costs in a three-year strategic revamp aimed at moving on from a succession of crises and quarterly losses.

One person who knew the deal said the third investor was a Swiss group, though not a rival bank.

Credit Suisse’s largest investor, US investment group Harris Associates, will not take part in the share placement but is expected to buy more stock as part of the rights issue, according to people who know the deal.

Olayan Group, an investment company owned by a wealthy Saudi family, is also not expected to take part in the share placement but would retain its stake of about 5 per cent in the bank by participating in the rights issue.

Olayan first acquired its stake in 1988.

Credit Suisse is acting as a global co-ordinator on the rights offering and has enlisted Deutsche Bank, Morgan Stanley, RBC Capital Markets and Société Générale as lead underwriters.

Over the weekend, Credit Suisse added 14 other banks to the syndicate.

«This was done as a show of strength to give comfort to the market,» said one of the bankers involved in the discussions.

www.sba.tax

Labels:

Comments

  1. Stanley4 November 2022 at 20:43

    Let's hope this move will strengthen these banks and the market as a whole. We sure need more stability and to be able to rely on something in these hard times. It's sad to hear about 9000 people that will be losing their jobs. This happens in all fields but it's never pleasant and these people should be helped somehow until they find new jobs.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

India- UK trade deal.

  According to India's top trade official, talks with the UK regarding a trade agreement are progressing well, despite obstacles related to temporary work visas and the opening up industries like automotive and spirits. The Commerce and Industry Minister, Piyush Goyal, explained that India is seeking transition periods or greater market access in specific sectors due to its economy, which is slightly larger than the UK's and expected to outgrow it in the coming decades. If a trade deal is reached, it would be one of the most significant agreements for Britain since leaving the EU, and it would also be necessary for India, which surpassed the UK as the fifth-largest economy last year. Goyal stated that India aims to increase its economy from $3.5tn to $35tn by 2047, the country's centenary of independence. According to officials and diplomats in India, talks about a proposed trade deal may be finished by early September, just in time for the G20 summit in New Delhi. Nigel Hu...
Post a Comment
Read more