Credit Suisse Saudi Backer Sheds $7 Billion Over Stake Deal
- SNB expected to take 9.9% stake in troubled Swiss bank
- Capital raise follows succession of losses at Credit Suisse
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Investors have wiped about $7 billion off Saudi National Bank’s market value amid growing concern over the lender’s plans to purchase a stake in Credit Suisse Group AG.
The Saudi lender, which is 37% owned by the kingdom’s sovereign wealth fund, is set to become one of the Swiss bank’s biggest investors after announcing its first major international acquisition a week ago. But analysts are questioning the upside from its participation in Credit Suisse’s rights issue.