Credit Suisse considers stock sale over Swiss IPO

Credit Suisse is considering a quickfire share sale rather than pursuing a separate listing for its Swiss banking division, two sources close to the matter told Reuters, in a move that could raise 3bn Swiss francs (£2.4bn). Keen to shore up its balance sheet, Switzerland’s second-biggest bank had announced plans in 2015 to sell 20-30 per cent of its highly profitable Swiss business through an initial public offering for up to 4bn francs. However, chief executive Tidjane Thiam said last month that the bank was examining alternatives to the IPO, which had been pencilled in for the second half of this year.

“They need more capital,” said one of the sources. “They realise they can do this without an IPO.” The likelihood of the IPO going ahead is now low, but the team behind it is continuing work on the project because there has not yet been an official decision, the second source said, adding that a rights issue is another option. Reuters reported on Friday that the bank’s board of directors will decide in April whether to proceed with the IPO. Credit Suisse declined to comment.

Shareholders piled pressure on Dutch paint maker Akzo Nobel to open talks with US rival PPG Industries after Akzo rejected a revised €22.7bn (£19.6bn) takeover offer as too low, too risky and a bad fit culturally. With Akzo insisting that the interests of staff and investors were best served by its plan to spin off its chemicals division and remain independent, the Dutch Shareholders’ Association (VEB) said PPG should be given a hearing.

“The second offer addressed many of Akzo’s concerns about research and development, jobs and the firms’ cultures, so they should at least discuss it,” said Paul Koster, VEB’s director, echoing the views of several of Akzo’s biggest shareholders. PPG said its offer was worth €90 a share – the level at which one investor said a sale would become attractive.