PARIS (Agefi-Dow Jones)–The Swiss bank UBS will enter into negotiations with Michael Klein with a view to unwinding the agreement which was to allow the American businessman to take control of a large part of the activities of investment bank Credit Suisse, the Financial Times reported on Wednesday, citing people familiar with the matter.
UBS announced Sunday evening the takeover of Credit Suisse, victim of the turbulence which has shaken the banking sector in recent weeks, for 3 billion Swiss francs (as many euros).
According to the British daily, the leaders of UBS want to engage in discussions because they consider that the terms of the transaction concluded by Credit Suisse are too favorable to Michael Klein and that certain parts of the investment bank of Credit Suisse should be kept.
“The agreement [entre Michael Klein et Credit Suisse] was concluded while the selling bank had a gun to its head and we are no longer in that position,” a person close to UBS told the FT. “We are not here to enrich Michael Klein at the expense of our shareholders. “, added this source.
UBS has instructed a legal team to examine how to cancel the contract signed by Credit Suisse in the least expensive way possible, according to the FT.
UBS, Credit Suisse and Michael Klein did not wish to comment on this information, indicates the FT.
Credit Suisse announced in February the acquisition of Klein & Co for $175 million, to facilitate the planned spin-off of its own investment banking business. Michael Klein was to lead the new entity resulting from the split, called CS First Boston. This transaction should be seen as “a strategic way to create value for the shareholder”, said then the managing director of Credit Suisse, Ulrich Körner.
The acquisition has drawn widespread criticism as Michael Klein was a member of Credit Suisse’s board of directors until October 2022 and led a strategic review of the investment bank last summer.
-Valerie Venck, Agefi-Dow Jones; +33 (0)1 41 27 48 25; vvenck@agefi.fr ed: FXS
Site Internet: https://www.ft.com/content/4dae9cab-eb9f-43b8-85f8-eb8d86573805
Agefi-Dow Jones The financial newswire
Dow Jones Newswires
March 22, 2023 07:18 ET (11:18 GMT)
