Credit Suisse Group AG is unlikely to get a better offer than the one UBS Group AG has made with the backing of Swiss authorities, said Mohamed El-Erian.
(Bloomberg) — Credit Suisse Group AG is unlikely to get a better offer than the one UBS Group AG has made with the backing of Swiss authorities, said Mohamed El-Erian.
“It would seem to be unwise on the part of Credit Suisse,” El-Erian, chief economic adviser at Allianz SE and a Bloomberg Opinion columnist, tweeted and then deleted Sunday. “The alternatives for dealing with CS would likely be on worse terms.”
Credit Suisse ended Friday with a market value of about 7.4 billion francs ($8 billion).
He re-iterated that “any alternative to the UBS offer will be worse,” including nationalization in a call with Bloomberg News. UBS Group AG agreed to buy Credit Suisse Group AG after increasing its offer to more than $2 billion, the Financial Times reported on Sunday.
The bank believed the $1 billion offer was too low and would hurt shareholders and employees who have deferred stock, Bloomberg earlier reported.
Read more: Credit Suisse Paths Narrow on Low UBS Bid, Government Aid Talks
Investors dumped Credit Suisse’s stocks and bonds after the collapse of smaller US lenders over the last week. The Swiss central bank vowed to provide liquidity which briefly calmed markets, while Swiss authorities are attempting to broker a deal between Credit Suisse and UBS to address the rout.
(Updates to reflect deleted tweet, new comments and UBS offer)
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