UBS chairman: Let’s be clear, we just saved Credit Suisse

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A marriage born of pain rather than love.

After much speculation and with markets reeling from Monday morning panic over a looming crisis, UBS firmed up its shotgun acquisition of ailing Credit Suisse on Sunday afternoon.

Some key points behind the deal:

  • Purchase Price: over $3 billion

  • Who will run the combined entity: UBS Chairman Colm Kelleher and UBS CEO Ralf Hammer

  • Other: UBS eyes deal for EPS till 2027; Credit Suisse investment will close; $8 billion in total annual cost savings by 2027; Both banks have unrestricted access to existing facilities of the Swiss National Bank.

“This acquisition is attractive to UBS shareholders, but, as far as Credit Suisse is concerned, we must be clear, this is an emergency rescue,” said UBS chairman Colm Kelleher in a very low-key shot at Credit Suisse. Taking said. Board and Executive Team.

The deal could help calm a broader volatile financial system, but could upset UBS shareholders, a former UBS executive told Yahoo Finance.

“You go from operating the best of a Swiss at UBS with a clear strategy to becoming the worst owner,” the source said.

UBS declined to make CEO Ralf Hammer available for an interview. Credit Suisse declined to make outgoing chairman Axel Lehman available for an interview.

This is news and will be updated.

Brian Sozzi is the executive editor of Yahoo Finance. Follow Sozy on Twitter @BrianSozzi and on LinkedIn, Tips on banking crisis? Email [email protected]

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