The emergency preparation will allow the takeover to proceed without the usual “six-week consultation period” with shareholders, according to people familiar with the situation.
The Swiss National Bank (SNB) and Switzerland’s financial regulator reportedly believe that the acquisition of investment bank Credit Suisse by UBS, Switzerland’s largest bank, is the “only option” to prevent a “collapse in confidence” in Credit Suisse.
According to a March 18 Financial Times report citing three people familiar with the situation, Switzerland is preparing to use “emergency measures” to accelerate the takeover by UBS of Credit Suisse, in an effort to finalize the acquisition before “markets open on Monday.”
It was noted that the emergency measures set in place would allow the deal to proceed without a shareholder vote, bypassing the usual Swiss regulations that require a “six-week” consultation period for shareholders “to consult on the acquisition.”
It was stated that the SNB and the Swiss Financial Market Supervisory Authority (FINMA) are working to “reach regulatory agreement” by Saturday night, having reportedly told international counterparts that “they regard a deal” with UBS as the “only option” to prevent a “collapse in confidence” in Credit Suisse.
This is a developing story, and further information will be added as it becomes available.
This article first appeared at Cointelegraph.com News