UBS Slumps After Agreeing to Buy Credit Suisse in Historic Deal

UBS Group AG shares fell 8.8% after it agreed to buy Credit Suisse Group AG in a historic, government-brokered deal.

(Bloomberg) — UBS Group AG shares fell 8.8% after it agreed to buy Credit Suisse Group AG in a historic, government-brokered deal.

The Swiss bank is paying 3 billion francs ($3.2 billion) for its rival in an all-share deal, a steep discount to Credit Suisse’s closing price on Friday. Credit Suisse shares declined 62% to 0.7 Swiss francs, below the deal price.

The rout spread to other banks. The Stoxx 600 Banks Index fell 3.4%, wiping out its gains this year.

More stories like this are available on bloomberg.com