Credit Suisse Shares Decline Over Scepticism Of State Street Takeover

Credit Suisse Shares Decline Over Scepticism Of State Street Takeover

After a media report a day earlier raised the heavily-shorted company from a near-20-year bottom, Credit Suisse shares slumped on Thursday on rising skepticism over a buyout approach from US financial giant State Street (STT).

After Inside Paradeplatz reported on Wednesday that State Street was considering a takeover proposal, the firm indicated overnight that it was focusing on the upcoming takeover of Brown Brothers Harriman’s Investors Services subsidiary.

Credit Suisse’s stock fell further from its highs due to a lack of confirmation. They were down 1.7 percent, underperforming the European market, which was down 0.4 percent ahead of the European Central Bank’s policy meeting.

Because of little synergies and a number of concerns varying from capital costs to litigation, analysts believe a takeover is highly unlikely. The asset management business could be one area of possible interest for State Street.

The speculation comes after Credit Suisse issued its third quarterly profit warning in a row.

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