Will UBS' Acquisition of Credit Suisse Pay Off for Shareholders?
In a deal heavily pushed by Swiss and global banking regulators, the large Swiss bank UBS (NYSE: UBS) recently announced that it will acquire the embattled Credit Suisse (NYSE: CS) in an all-stock transaction valued at roughly $3.24 billion.
Credit Suisse has struggled immensely for the last several years and had hoped to transform itself. But given more struggles last week, significant turbulence in the banking sector, and a threat to Switzerland's economy (and perhaps Europe's as well if the bank went under), global banking regulators pushed a deal through over the weekend.
The credit rating agency S&P Global cut UBS' outlook to "negative" upon the announcement of the deal, citing "material execution risk in integrating CS into UBS." Will this deal be problematic or pay off for shareholders? Let's take a look.
Source Fool.com
