BlackRock puts together a takeover bid from competitor Credit Suisse

BlackRock is working on a competing bid for Credit Suisse aimed at trumping a plan blessed by the Swiss central bank for UBS to take over its struggling rival this weekend, several people with knowledge of the matter told the Financial Times.

The US investment giant is evaluating a number of options and working with other investors, it said on the matter. It might decide to only bid on parts of the deal.

BlackRock has communicated its intention to Credit Suisse, which is in advanced discussions with UBS about a transaction that could lead to a full or partial merger.

There is no guarantee that a transaction will be agreed and any agreement would face significant regulatory hurdles in Europe and the US.

Larry Fink, co-founder and CEO of $8.6 trillion wealth manager BlackRock, is driving the offering. Fink formerly worked at First Boston, Credit Suisse’s investment banking business.

BlackRock has long been one of Credit Suisse’s largest investment banking clients, specifically its fixed income trading arm. A deal, particularly for the US arm, would be an opportunistic way to bring trading capacity in-house, one of the people said.

The FT reported on Friday that the Swiss National Bank and regulator Finma are orchestrating negotiations between Credit Suisse and UBS to boost confidence in the country’s banking sector. Her intervention came days after the central bank was forced to provide Credit Suisse with an emergency credit line of 50 billion francs ($54 billion).

That support, however, failed to stem a fall in the bank’s share price, which fell to a record low after its largest investor ruled out providing more capital and its chairman admitting it continues to suffer from an exodus of wealth management clients.

Credit Suisse declined to comment. BlackRock did not immediately comment.

This is an evolving story. Continue. . . 

Additional reporting by Laura Noonan