Credit Suisse Said to Name HSBC, SocGen, Citigroup for Offering

Credit Suisse Shifts Focus to Wealth Business
  • Swiss bank plans to raise $6.3 billion in rights offering
  • Zurich-based lender will lead the share sale, people say

Credit Suisse Group AG named HSBC Holdings Plc, Societe Generale SA and Citigroup Inc. to help it handle its 6.05 billion Swiss franc ($6.3 billion) rights offer, two people with knowledge of the matter said.

The bank plans to sell 1.35 billion francs of stock to select shareholders and offer 4.7 billion francs to existing investors next month, it said on Wednesday. The Swiss lender will lead the offering with the other three acting as joint bookrunners, while some other investment banks are yet to be hired, said the people, who asked not to be identified because the details are private.

Chief Executive Officer Tidjane Thiam, brought in to restore investor confidence, plans to create three regionally focused divisions and split the securities unit into a markets business and an investment banking operation. He’ll also “right-size” the bank’s securities unit in London and reduce capital allocated to the division by scaling back its macro- and prime-services operations, Switzerland’s second-largest bank said.

Officials at HSBC, Societe Generale and Citigroup didn’t immediately respond to requests for comment.

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