Credit Suisse Shares Slip On Skepticism Over U.S. Takeover

June 9, 2022

Credit Suisse shares fell on Thursday on growing skepticism of a takeover offer from U.S. financial giant State Street after a media report on Wednesday boosted the heavily-shorted stock from a near 20-year low.

Responding to an Inside Paradeplatz report that U.S.-based group was planning a takeover bid, State Street said overnight it was focused on the pending acquisition of Brown Brothers Harriman's Investors Services business.

The lack of any confirmation drove shares in Credit Suisse further down from the highs hit on Wednesday. By 0708 GMT they fell 3.5%, underperforming Europe's broader market which was down 0.5% ahead of a European Central Bank policy meeting.

Analysts see any takeover as highly unlikely because of limited synergies and a number of risks ranging from capital costs to litigation. One area, however, of potential interest for State Street could be the asset management business.

The deal speculation comes as Credit Suisse delivered a third consecutive quarterly profit warning.

Source: Reuters
Image Source: Reuters

THE METRO BUSINESS

The Education That Matters: MSBM’s Guide to Thinking, Thriving, and Leading

How MSBM’s Executive Courses Prepare You to Out-think and Outperform the Competition

Insider Tips for Excelling in MSBM’s Online Courses

Strategies for Success: MSBM’s Business Management Insights

Credit Suisse Shares Slip On Skepticism Over U.S. Takeover

Top Stories

Nations are vying to join the BRICS group, according to South Africa, as Russia assumes leadership.

AI-Driven Business Transformation: A Project Management Perspective.

DUP has reached an agreement with the UK government to reinstate power-sharing in Northern Ireland.

Global Trade at Risk: The Implications of Red Sea Ship Attacks on Consumer Goods

Related Posts

Credit Suisse Shares Fall Around 10% In Early Trading

Credit Fears: Credit Suisse To Buy Back $3 Billion In Debt, Sell Landmark Hotel

Credit Suisse Issues Profit Warning For Second Quarter, Citing Ukraine War And Rate Hikes

Credit Suisse Vows To Overhaul Its Risk Management After A Litany Of Scandals