BlackRock headquarters in Recent York, US, on Friday, Jan. 13, 2023. via Getty Images
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BlackRock has denied a report that it’s preparing a takeover bid for embattled Swiss lender Credit Suisse.
“BlackRock isn’t participating in any plans to amass all or any a part of Credit Suisse, and has no real interest in doing so,” an organization spokesperson told CNBC Saturday morning.
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It comes after the Financial Times reported that the U.S. asset manager was working on a bid to amass the bank, citing people conversant in the situation.
UBS has also been suggested as a possible buyer, with the FT reporting Friday that it’s in talks to take over all or a part of Credit Suisse. UBS hasn’t commented on the report.
Credit Suisse’s future looks to be hanging within the balance after a multibillion-dollar lifeline offered by the Swiss central bank last week didn’t calm investors.
Credit Suisse’s shares registered their worst weekly decline because the onset of the coronavirus pandemic last week, and are down almost 35% over the month up to now.
The most recent slide in stock price got here after the Saudi National Bank revealed it might not provide the bank with any additional cash, and follows a delay of its annual results over financial reporting concerns.
The failure of Silicon Valley Bank — the most important U.S. banking failure since Lehman Brothers — and the shuttering of Recent York-based Signature Bank compounded nervousness around the worldwide banking sector.
Credit Suisse was already within the midst of a large strategic overhaul geared toward restoring stability and profitability. It has faced various scandals and controversies over recent years, including the fallout from its involvement with the collapsed supply chain finance firm, Greensill Capital, which led to $1.7 billion in losses.
The default at hedge fund Archegos Capital not long after led to a different $5.5 billion loss for the Swiss investment bank.
These — and other controversies — hit investor and customer confidence hard, with the bank losing billions of dollars in deposits consequently.
— CNBC’s Ganesh Rao and Elliot Smith contributed to this report.
