UBS to acquire rival bank Credit Suisse amid crisis
UBS shares have fallen by as much as 16 per cent in early trade, their biggest one-day fall since 2008.
It follows concerns among investors about the long-term benefits of the rescue deal for Credit Suisse and the outlook for banks in Switzerland.
In a package engineered by Swiss regulators on Sunday, UBS Group AG will pay 3 billion Swiss francs (£2.65bn) for Credit Suisse Group AG and assume up to 5 billion francs (£4.4bn) in losses.
Credit Suisse shares slumped 62 per cent, reflecting the huge loss its shareholders will see in their investment in the bank.
Meanwhile, the FTSE 100 was down 0.7 per cent as markets opened in London, after UBS agreed a rescue deal to buy its banking rival Credit Suisse in a $3.2bn takeover.
Asia markets were also mostly down on Monday morning, with Hong Kong’s Hang Seng index leading losses in the region – falling more than 2 per cent and dragged down by healthcare stocks, CNBC reported.
