Credit Suisse Group AG CS could receive a takeover offer from U.S. financial giant State Street STT, stated a media report a day earlier.
What happened: According to Reuters, State Street indicated overnight that it was focused on the pending acquisition of Brown Brothers Harriman's Investors Services business, following a report by Inside Paradeplatz on Wednesday that it was planning a takeover attempt and may approach Credit Suisse.
Analysts believe that any takeover is highly unlikely due to limited synergies and a number of concerns ranging from capital costs to litigation. According to Deutsche Bank, one area of possible interest for State Street might be asset management.
Inside Paradeplatz stated that State Street would bid 9 Swiss francs per share, a premium of more than 30% over Tuesday's closing price. Credit Suisse would be valued at 23 billion francs ($23.6 billion), writes Reuters.
However, there was no confirmation provided by either party regarding the takeover offer.
State Street said it is preparing a statement following the media report that it may approach Credit Suisse.
Price Action: CS shares are trading higher by 2.04% at $7.01 and STT higher by 0.43% at $69.34 during the premarket session on Thursday.
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