Credit Suisse Is Being Acquired -- Shares Are Getting Hammered
Shares of Credit Suisse (NYSE: CS) traded more than 51% lower as of 10:23 a.m. ET after another large Swiss bank, UBS (NYSE: UBS), agreed to acquire Credit Suisse in a deal heavily pushed by regulators.
Credit Suisse's stock fell significantly last week after the bank continued to experience net asset outflows and had to tap the Swiss National Bank for liquidity. It became quite evident to regulators that the bank would need to be acquired to avoid a systemic event, especially with the banking sector already struggling.
UBS was a likely candidate and the bank acquired it for a very attractive price of roughly $3.24 billion in an all-stock deal, valuing Credit Suisse stock at $0.82 per share. On Friday, shares had been trading at close to $2, which is why the stock is down so heavily today.
Source Fool.com
