Credit Suisse Group's (NYSE:CS) troubles will likely lead to a takeover by UBS Group AG (NYSE:UBS), analysts at investment bank JP Morgan believe.
In a note to investors, analysts wrote that the embattled Swiss lender had several paths forward, the most probable being an acquisition by UBS.
“We see a resolution scenario as most unlikely in our view and more likely an intervention with the third option of a takeover as the most likely scenario especially by UBS,” the analysts said in the note.
The American bank's analysts noted that Credit Suisse’s capital position was not an issue, but the “situation about ongoing market confidence with its international business (IB) strategy and ongoing franchise erosion.”
“Status quo is no longer an option,” they wrote.
It’s unclear if the analysts’ position takes into account the bank’s US$54bn lifeline from the Swiss National Bank secured overnight.
Credit Suisse’s shares had surged on the news of the Swiss central bank’s support, up 19.5% at 2.03CHF in Zurich on Thursday afternoon.
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