State Street Might Tap Credit Suisse As Takeover Interest

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.

Also Read: Credit Suisse Warns On Q2 Loss, Mulls Workforce Reduction To Save Costs

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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Posted In: NewsRumors

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