Credit Suisse share price: Selling German private bank business

on Dec 5, 2013
Updated: Oct 21, 2019
Listen Thursday, December 5: Credit Suisse (VTX:CSGN) today confirmed that it will sell its German private bank operations to Bethmann, part of ABN Amro, for an undisclosed amount.

“Credit Suisse remains highly committed to the German wealth management market,” the bank said in a statement on Thursday, adding German clients will be booked on the bank’s other platforms, such as Switzerland and Luxembourg.
Reports in the German media yesterday said that the Frankfurt-based Bethmann was about to win the bidding process for the private customers business, beating rivals including the Munich-based Merck Finck & Co. Following the acquisition, Bethmann will add 9,000 clients with €10 billion (₤8.3 billion) of assets to its books, expanding its total clients to 20,000 and its assets under management to €34 billion (₤28.2 billion).

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In June Reuters quoted a source from Credit Suisse as saying that the Swiss bank was mulling over a sale of the German private bank business as part of its agenda to boost profit by concentrating on the mega-rich rather than a larger “mass affluent” client base.

**Credit Suisse sells DLJ Merchant Banking**
Credit Suisse has sold its stake in private equity business DLJ Merchant Banking Partners to London-based Coller Capital after receiving approval from regulators.
The divestment from DLJ Merchant Banking, a $2.1 billion (₤1.28 billion) pool raised in 2008, follows the Swiss bank’s offloading of its secondary private equity platform CS Strategic Partners to alternative asset manager Blackstone Group. It also agreed to sell its customised fund investment group to Grosvenor Capital Management in August.

**Credit Suisse to issue $2.5 billion, 7.5% CoCo**
The Swiss bank is expected to price a $2.25 billion (₤1.37 billion) contingent capital (CoCo) at a yield of 7.5 percent, according to market sources quoted by Reuters.
Credit Suisse had initially probed investors’ interest for the Additional Tier 1 instrument at 7.75 percent.
Credit Suisse will be bookrunning the perpetual non-call 10-year CoCo deal. ING, Barclays, Lloyds bank and Wells Fargo are joint lead managers.

**Credit Suisse to ring-fence to protect against a possible crisis**
Credit Suisse last month announced that it planned to ring-fence, or change its legal structure, to make it easier to split the bank in the event of a severe crisis. “Credit Suisse plans to create a subsidiary for its Swiss-booked business, primarily wealth management, retail and corporate and institutional clients as well as the product and sales hub in Switzerland,” the second biggest Swiss bank said in a statement.
**As of 11.23 UTC buy Credit Suisse shares at 26.70 Swiss francs.**
**As of 11.23 UTC sell Credit Suisse shares at 26.21 Swiss francs.**


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