Credit Suisse bets on Latin America with Garantia

Article Abstract:

Credit Suisse Group, a Switzerland-based bank, has acquired Sao Paulo, Brazil-based Banco de Investimentos Garantia SA for $675 million in cash and stock. The move is part of Credit Suisse's strategy to expand in emerging markets, such as Latin America. Credit Suisse acquired Garantia, an investment bank with $5 billion in total assets, during an international auction. Garantia claims it holds 45% market share in underwriting of new equity issues and it has about $1 billion under management. The deal, which is still awaiting regulatory approval, is expected to be completed by the end of July 1998.

Comment:

Acquires Sao Paulo, Brazil-based Banco de Investimentos Garantia SA in an international auction for $675 mil in cash and stock

Asset sales & divestitures, Acquisitions & mergers, Foreign operations, Business Credit Institutions, All Other Nondepository Credit Intermediation, Commercial finance companies, Banco de Investimentos Garantia S.A.

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UBS chairman quits over fund

Article Abstract:

UBS AG Chairman Mathis Cabiallavetta resigned from his post due mainly to the Swiss bank's hedge-fund losses. The executive's sudden departure from the bank, coupled with the resignation of three other top executives, is expected to signal to other banks the risk of handling operations beyond the basic banking service. UBS admits that it has failed in handling other high-yield but risky investments and industry observers believe that the heavier problem lies on the reestablishment of trustworthiness more than capital base.

Comment:

Chairman Mathis Cabiallavetta resigns from post due mainly to Swiss bank's hedge-fund losses

Executive changes & profiles, UBS AG

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Credit Suisse confirms talks with Garantia

Article Abstract:

Credit Suisse Group of Switzerland said it is discussing a possible "close cooperation" with Banco Garantia, Brazi's largest investment bank. The announcement is in line with Credit Suisse's strategy of expanding its investment banking operations in emerging markets. A Credit Suisse spokesperson refused to say what the nature of the cooperation will be and the possible size of a cooperation. Analysts, however, believe Credit Suisse will only insist on a takeover that will have an estimated value of up to $1 billion.

Comment:

Is discussing a possible "close cooperation" with Banco Garantia, Brazil's largest investment bank

Strategy & planning, Banco Garantia

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