Denial Doesn’t Put Credit Suisse Takeover Rumors to Bed

Although State Street has rejected rumors about its interest in the Swiss lender, a takeover could still be an option for the ailing bank.

US State Street rejected rumors that it plans to take over the Swiss bank in an emailed statement to “Bloomberg,” the news outlet (behind paywall) reported Friday.

The denial comes after Swiss blog «Inside Paradeplatz» said Thursday that the US custodian was allegedly planning to make a takeover bid and after Credit Suisse CEO Thomas Gottstein made dismissive comments about the rumor at a Goldman Sachs conference in London the same day.

low valuation

However, the idea of ​​a takeover is not completely off the table with the ppartner of Harris Associates and top investor david herro, suggesting that other acquirers could be interested in buying the bank in an interview with «Financial News» (behind paywall).

“It doesn’t surprise me at all given the low valuation of the business,” Herro said, commenting on the State Street rumor to the outlet. He also said that he would support a takeover if the right suitor were to come along and make an offer «at the right price.»

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