, Columnist
It’s Time for UBS to Take an Axe to Credit Suisse
First on the chopping block: the fixed-income unit.
All signs lead to big cuts at Credit Suisse.
Photographer: Bloomberg/BloombergThis article is for subscribers only.
The key number for UBS Group AG shareholders in its takeover of Credit Suisse Group AG wasn’t the $3.25 billion price or the $17 billion of junior bonds being wiped out, but a data point much easier to miss.
The number that showed just how good a bargain UBS got was the 74% jump in tangible book value per share it will record on the day the deal completes. If that sounds obscure, try this: Based on UBS’s valuation before the deal, its share price now ought to be almost 30 francs rather than Friday’s 17.26 francs.