Possible quick fire share sale

CREDIT Suisse will not decide on how it wants to raise fresh capital until after this week’s annual general meeting, SonntagsZeitung reported on Sunday.

The Swiss bank is considering a quick fire share sale or listing 20 to 30 per cent of its Swiss business in order to raise between 3 and 6 billion Swiss francs ($F6.2b-$F12b) in new capital, the Swiss newspaper said, citing sources close to chairman Urs Rohner.

The newspaper also reported that Mr Rohner expects all the banks’ proposals to be accepted by shareholders at its annual general meeting on Friday.

Mr Rohner told Weltwoche magazine in March the bank had time to decide whether to go ahead with a planned listing of its domestic banking unit, originally envisioned for the second half of 2017.

Reuters had previously reported that Switzerland’s second-biggest bank was likely to make a decision in April on how to proceed on raising new capital.

Credit Suisse, which declined to comment, earlier this month offered to cut bonuses for top management by 40 per cent and freeze pay for its board of directors in an attempt to quash a shareholder revolt over payouts to senior managers.

Its pay plans included bonuses of 78 million Swiss francs ($F163b) to top executives and higher pay for the board, despite the bank posting a 2.7 billion-franc ($F5.6b) net loss last year.

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