Saudi, Qatar and Norway to see big losses on UBS deal for Credit Suisse

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It was not even six months ago that the Saudi National Bank paid $1.5 billion for a 9.9% stake in Suisse.

UBS now holds a stake of about $215 million after UBS,
reportedly swooped in to acquire its fallen rival for more than $2 billion.

: UBS reportedly in deal to buy Suisse for over $2 billion

And while the Saudis certainly cannot be blamed for the scandals and mistakes made by Suisse CSGN,

It may have been his own mistakes that ultimately cost the Swiss authorities enough.

Saudi National Bank President Ammar Al Khudiyari went on Bloomberg TV on Wednesday and was asked whether he would increase his stake. “The answer is absolutely no, for a number of reasons outside of the simplest, which is regulatory and statutory,” he said.

Investors panicked, with Suisse shares plunging 24%, even though his comments were in line with what the bank had said in October. At the time, it said it had no current plans to go beyond its 9.9% shareholding, although it said that “any future investment will be made after careful consideration of the financial impact, capital treatment and merits of such investment”. Timing will be assessed individually.” Long term shareholder value creation.

The Saudi National Bank also clarified that they were not interested in expanding internationally, so the Suisse investment was a “financial opportunity” with potential benefits in serving their own wealthy clients with Credit Suisse products and services. Was.

The Saudis are not the only Middle East investors facing huge paper losses. The Qatar Investment Authority holds a 6.8% stake in Suisse, the sixth largest position in its portfolio. Olayan Group, which is headquartered in Liechtenstein but whose founder was a prominent Saudi businessman, is the number three shareholder.

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Another major shareholder is Norway’s sovereign wealth fund Norges Bank Investment Management.