Morgan Stanley, JPMorgan Advise on UBS Deal for Credit Suisse

Morgan Stanley and JPMorgan Chase & Co. advised UBS Group AG on its historic takeover of battered crosstown rival Credit Suisse Group AG in a government-brokered deal aimed at containing a financial crisis.

(Bloomberg) —

Morgan Stanley and JPMorgan Chase & Co. advised UBS Group AG on its historic takeover of battered crosstown rival Credit Suisse Group AG in a government-brokered deal aimed at containing a financial crisis. 

Credit Suisse worked with Centerview Partners, according to people familiar with the matter, who asked not to be identified because advisory roles weren’t yet public. The firms worked through the weekend to seal a deal before the markets opened on Monday.

The Swiss bank is paying more than $3 billion for its rival, according to a statement Sunday. It will be an all share deal and priced at a fraction of Credit Suisse’s close on Friday, when the bank was valued at about 7.4 billion francs ($8 billion).

Spokespeople for Morgan Stanley, JPMorgan and Centerview declined to comment.

The plan, negotiated in hastily arranged crisis talks over the weekend, seeks to address the rout in Credit Suisse’s stock and bonds over the past week following the collapse of smaller US lenders. A liquidity backstop by the Swiss central bank mid-week failed to end a market drama that saw client outflows and threatened to send counterparties fleeing, with potential ramifications for the stability of the broader finance industry if a solution wasn’t found.

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