Credit Suisse Group AG (NYSE: CS) is trading slightly up in extended hours on a report that peer UBS Group AG (NYSE: UBS) is considering buying either all or parts of the embattled lender.
Update is expected on the coming Monday
People familiar with the matter told Financial Times late on Friday that board members from both banks are scheduled for a meeting over the weekend.
While it’s not a given that an agreement will indeed be signed, the goal is to reach a solution by Monday, they added. Swiss regulators are facilitating the talks as part of a broader push to restore confidence in the country’s banking space.
The stock market news arrives only a day after Credit Suisse secured a $54 billion lifeline from the Swiss National Bank. Its shares are currently down over 45% versus their year-to-date high.
Is Credit Suisse any different from SVB?
Credit Suisse has already reiterated that it doesn’t have the same problems that resulted in the collapse of Silicon Valley Bank. But investors remain unconvinced, especially since it had a more than expected $1.45 billion loss in its Q4.
Anonymous sources also confirmed today that Swiss regulators have informed their peers in the U.S. and the U.K. that a potential merger was their “Plan A”. Nonetheless, there are other options that they may consider as well.
Both UBS and Credit Suisse refused to comment on the Financial Times report. Wall Street currently has a consensus “underweight” rating on the hard-hit bank stock.
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