Credit Suisse, the crisis-ridden bank, announced on Wednesday that its battered shares no longer meet the criteria for listing on the New York Stock Exchange (NYSE). The bank stated that this issue will be resolved through its upcoming sale to UBS.
In a statement, Credit Suisse revealed that it had been notified by the NYSE on May 1st that it no longer complies with the exchange's minimum price criteria for continued listing. Under NYSE rules, shares must trade at a minimum price of $1.00 for 30 consecutive days in order to qualify for listing.
Credit Suisse's shares, which have been severely affected by fears of contagion following the collapse of three US regional banks, are currently listed on the NYSE under a "Depositary Shares" scheme that allows foreign firms to sell stock in the United States. However, the bank's share price has declined significantly, hovering around 0.76 Swiss francs ($0.83) since the announcement of the takeover by historic rival UBS.
The acquisition, organized by Bern, is aimed at rescuing Credit Suisse from its recent challenges. The share price decline reflects a valuation of around three billion Swiss francs for the acquisition, a stark contrast to the levels seen in March 2021 when the bank was hit by a series of shocks and scandals.
Credit Suisse expects that the deficiency in compliance with NYSE's listing criteria will be resolved upon the completion of the acquisition by UBS. As part of the deal, Credit Suisse shares will be exchanged for UBS stock, leading to the delisting of Credit Suisse from the New York Stock Exchange.
