2023-05-17 12:21:21
The bank UBS revealed that it expected an accounting gain of almost 35 billion dollars (31.17 billion francs during the day) from the forced takeover of Credit Suisse, in a document intended for the American policeman of the stock market.
UBS also expects some $4 billion in costs related to various litigation and regulatory costs, in this document published overnight Monday to Tuesday, reports the Bloomberg agency.
UBS also goes into detail on the circumstances of the takeover of its rival – for only 3 billion Swiss francs – under pressure from the authorities until the announcement on March 19 by the President of the Confederation Alain Berset.
>> Read once more: The National Council definitively refuses guarantees in favor of Credit Suisse
“Due to the circumstances in which the transaction was made, the purchase price will be lower than the net assets recorded, resulting in negative goodwill”, underlines the stock market document, of a hundred pages.
This “negative goodwill” will be recorded in the accounts of the megabank born from the takeover “on the date of completion” and therefore appear in the financial accounts of the 2nd quarter, if the transaction is properly completed by then.
Provisional figures
“The negative balance of goodwill resulting from the transaction is estimated at 34.8 billion”, underlines UBS in this document, adding that “this adjustment” accounting is, “by its nature, not reproducible”.
The bank is careful to point out that these figures are still subject to change, in the more than 100 pages published to inform American holders of Credit Suisse shares.
>> Read also: Sergio Ermotti wants a ‘360 degree’ investigation into the fall of Credit Suisse
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