Credit Suisse Group AG rose as much as 7.5% on Monday the 5th of December, on the prospect that Saudi Arabian Crown Prince Mohammed bin Salman will take a stake in the Swiss firm’s planned investment bank spin out. Bin Salman is considering placing around $500 million into the vehicle, according to people with knowledge of the issue. Other potential investors include former Barclays Plc chief executive Bob Diamond’s Atlas Merchant Capital, the people said, asking not to be identified as the deliberations are private according to Bloomberg news. It is yet unknown whether the Crown Prince’s interest would come in a personal capacity or through other investment vehicles in the Kingdom.
The Saudi National Bank, 37% owned by the nation’s sovereign wealth fund, is already an anchor investor in Credit Suisse’s $4 billion ongoing capital raise. An additional investment by the oil-rich nation would boost confidence in Credit Swiss’s restructuring efforts. The Swiss firm’s executives have already said several parties have shown interest in investing in the reprisal of the Credit Suisse First Boston brand under veteran dealmaker Michael Klein. If anyone has emerged as the ‘winner’ from the Credit Suisse breakup, it’s Michael Klein, the former Citi executive who will be both reversing his boutique M Klein & Co. into the spun-out capital markets and advisory business of Credit Suisse, running the new CS First Boston and receiving a ‘substantial’ shareholding in the process. However, Credit Suisse declined to comment. According to Media, Klein has a few things in his favour. He’s polite and hard-working and the sort of person to see clarity and opportunity amidst uncertainty and dislocation according to an effusive former colleague. He’s also on very good terms with the ruling elite in Saudi Arabia, and this is turning out to be a great advantage both for Klein, for Credit Suisse, and for anyone who holds Credit Suisse stock in their bonus.
Credit Swisse extended gains from Friday, when comments by Chairman Axel Lehmann helped break 13-day losing streak. They’re down about 63% this year. Lehmann said that the bank’s liquidity situation had improved and the huge outflows of client assets earlier in the quarter had been stemmed.
Seeking to restore vigor to a business that has been languishing, Credit Suisse in October said that it will reshape its investment bank by resurrecting the First Boston brand.
Credit Suisse’s history with the First Boston brand dates to 1978 when the pair linked up to operate in the London bond market. They later merged to create CS First Boston, but a tough period followed after famed bankers departed and the firm ran into regulatory troubles. Some bankers and investors have expressed scepticism over its ability to regain its past glory in a shrinking market.
Disclaimer: Important Disclosures and Disclaimers. This report is intended for informative purposes only. Under no circumstances is it to be used or considered as an offer to sell or a solicitation of any offer to buy any security. It is recommended that investors independently evaluate the strategies and consult a financial adviser before proceeding to the purchase or sale of any security or other financial instrument. Also note that past performance may not be a reliable indicator of future returns. Investors may not get back the original amount invested. This report has been compiled based on information that I believe is reliable, but the accuracy, completeness, or correctness cannot be guaranteed. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice.
The use of forward looking wording such as “expect”, “estimate”, “forecast”, involve known and unknown risks and uncertainties which may mean that the actual results may differ from any future results implied by the forward looking wording included in the relevant statement
Main line: (357) 22 256582
Brokers: (357) 22 275323
Fax: +357 22 262545
41 Archbishop Makarios III Avenue, Toumazis Makariou Tower, 1st Floor, Office 11, 1065 Nicosia, Cyprus
There is a high level of risk involved with trading leveraged products such as CFDs. You should not risk more than you can afford to lose, it is possible that you may lose all your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. If the risks involved seem unclear to you, please seek independent advice. For further details please refer to Financial Instruments Description and Associated Risks. The information contained in the website has been prepared by Emporium Capital K.A Limited, a Cypriot Investment Firm, operating under license number CIF358/18 issued by the Cyprus Securities and Exchange Commission, and, except otherwise specified herein, is communicated by Emporium Capital K.A Limited. Although this website is accessible worldwide, the publications are only intended for use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. The products and services referred to in the publications are not intended for recipients residing in countries where the provision of such products and services would constitute a violation of applicable legislation or regulations. It is the sole responsibility of any recipient employing or requesting a product or service to comply with all applicable legislation or regulations. >> view more
