Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF0.76/share for a total consideration of CHF3-billion, UBS said in a statement on Sunday. The deal will create a global wealth manager with $5-trillion of invested assets across the group.
Both banks have unrestricted access to the Swiss National Bank existing facilities, through which they can obtain liquidity from the SNB in accordance with the guidelines on monetary policy instruments.
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What a hit for UBS! They are buying a lot for very little.