State Street today denied claims it is planning to take over Credit Suisse, after a Swiss website published a report claiming the Boston bank is planning to buy out Zurich headquartered investment bank.
The denial comes after the head of Credit Suisse also brushed aside claims Credit Suisse could be bought out by Boston bank State Street, whilst speaking at a conference in Rome.
A spokesperson for State Street said the bank “is not pursuing an acquisition of, or any other business combination with, Credit Suisse.”
“There is no basis to the continuing market rumors,” State Street’s spokesperson continued. “Although we have a long-standing company policy of not commenting on such speculation, we feel a response to these reports is now warranted in this instance, as we are in the midst of a pending acquisition of Brown Brothers Harriman Investor Services.”
Earlier in the day, Credit Suisse chief executive Thomas Gottstein also dismissed suggestions State Street might takeover the investment bank, after Swiss website Inside Paradeplatz said the US bank was planning to buy Credit Suisse for 23bn Swiss francs (£18.79bn).
Speaking at the Goldman Sachs European Financials Conference in Rome, Gottstein said “We never comment on rumours. My father once gave me a piece of advice: for really stupid questions, you’d rather not comment at all. I will listen to my father’s advice in this instance.”
The comments come after Credit Suisse’s share price jumped on publication of the Swiss website’s report, which reported that State Street is planning to buy up Credit Suisse at 9 Swiss francs per share – representing a more than 36 per cent premium on the firm’s current share price.
Shares in Credit Suisse later dropped more than 7.5 per cent as traders responded to the report with scepticism.
The reports come after Credit Suisse yesterday issued a profit warning, in what is now the third consecutive quarter the bank has warned shareholders about its profitability.