UBS Gains as Investors Weigh Credit Suisse Deal Upside
- Historic rescue deal raises questions for UBS strategy
- Market may soon realise upside for UBS, investor says
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UBS Group AG shares gained as investors weighed up the pros and cons of its Credit Suisse Group AG takeover, a deal that forces the smaller bank to wind down assets and restructure while handing over valuable assets at a bargain price.
The government-brokered, 3 billion Swiss franc ($3.2 billion) deal signed late Sunday was intended to put an end to a crisis of confidence at Credit Suisse and stem contagion through the global financial system that started with the collapse of Silicon Valley Bank this month. The deal values Credit Suisse at a fraction of its closing price, with a raft of government backstops and guarantees to help ease the pain for UBS.