(MENAFN- Swissinfo)
Shareholders listen to Credit Suisse chairman Axel Lehmann's address at the bank's AGM. © Keystone / Michael Buholzer
Credit Suisse shareholders are reportedly following in the footsteps of bondholders by launching legal challenges to the terms of the bank's sale to UBS.
This content was published on May 28, 2023 May 28, 2023 swissinfo.ch/mga The SonntagsZeitung newspaper reports that some shareholders believe the sale price of CHF3 billion ($3.3 billion) was far too low.
+ relive the drama of the credit suisse takeover
The emergency takeover on march 19 reduced the value of individual Credit Suisse shares from CHF1.86 on March 17 to CHF0.76 two days later, when the deal was struck.
On April 5, the majority of shareholders voted in favour of the takeover at Credit Suisse's annual general meeting, despite many concerns.
But some shareholders feel ripped off and are prepared to take their complaint to the courts, according to Zurich law firm Rüd Winkler Partner.
They argue that the bank's fire-sale violates a 2011 Supreme Court ruling that stipulates how a company should be valued during a takeover.
Credit Suisse was a viable company with numerous assets when it was sold. The takeover was forced by a crisis of confidence among clients, which sparked a bank run .
According to the SonntagsZeitung, the bank could have been sold for a minimum CHF7.3 billion, going up to CHF35 billion, under ordinary circumstances.
Thousands of holders of Credit Suisse AT1 bonds have separately filed complaints with the federal administrative court .
They argue that the Swiss financial regulator unlawfully cancelled their bonds as part of the emergency takeover.
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