BlackRock is working on a rival bid for Credit Suisse, aimed at pushing ahead with a Swiss central bank-approved plan to acquire its struggling rival later this week, several people with knowledge of the matter told the Financial Times.
The US The investment giant is evaluating a number of options and working with other investors, people briefed on the matter said. It may decide to bid for only part of the business.
BlackRock has notified Credit Suisse of its intention, which is in advanced discussions with UBS about a transaction that could result in a full or partial combination.
There is no guarantee that any transaction will be agreed and any deal would face significant regulatory hurdles in Europe and the US.
Larry Fink, co-founder and chief executive of $8.6tn money manager BlackRock, is driving the bid. Fink worked at First Boston, Credit Suisse’s investment banking business.
BlackRock has long been one of Credit Suisse’s largest investment banking clients, particularly its fixed income trading desk. A deal, specifically for its US arm, would be an opportunistic way to bring trading capacity in-house, one of the people said.
The FT reported on Friday that the Swiss National Bank and regulator Finma are holding talks between Credit Suisse and UBS in an effort to boost confidence in the country’s banking sector. His intervention came days after the central bank was forced to provide an emergency SFr50bn ($54bn) credit line to Credit Suisse.
However, this support failed to arrest a slide in the bank’s share price, which hit a record low after its biggest investor refused to provide more capital and its chairman admitted it was suffering an exodus of wealth management clients.
Credit Suisse declined to comment. BlackRock did not immediately provide comment.
This is a developing story. More to follow. . .
Additional reporting by Laura Noonan