Shares of UBS (UBS) – Get Report and Credit Suisse (CS) – Get Report rose on Monday after a media report said UBS Chairman Axel Weber was examining the possibility of a merger between the two Swiss banking giants.
The coronavirus pandemic and low or negative interest rates have buffeted banks around the world.
UBS shares recently traded at $12.54, up 2.4%. They have eased 0.3% so far this year. Credit Suisse American depositary receipts srecently traded at $11.24, up 4.5%. They have fallen 16% year to date.
Weber is looking at a possible tie-up with Credit Suisse as part of a regular examination of strategic options, knowledgeable sources told Bloomberg.
UBS has discussed the idea with consultants, but it hasn’t approached its executive board about the possibility, the sources said. They said the two banks aren’t currently conducting formal talks.
The Swiss finance blog Inside