Michael Derrer Fuchs
Under pressure to revamp its business after years of missteps and scandals Credit Suisse (NYSE:CS) is seeking an outside investor to bring in some fresh capital for a spinoff of its advisory and investment banking businesses, Bloomberg reported Thursday, citing people with knowledge of the negotiations.
The Swiss bank aims to rework its advisory and dealmaking businesses into a boutique-style model, along with its leveraged finance unit. Bringing in an outside investor to take a partial stake in the enterprise would help fund the costs to hire and retain talent, the people told Bloomberg.
Talks on reviving the First Boston brand for the to-be-spun-out businesses have advanced as well, the people said. Credit Suisse (CS) is also looking at other options and decision-making is ongoing.
Meanwhile, Reuters reported that the company is looking to sell its Savoy Hotel in the center of Zurich’s financial district. The bank routinely reviews its property portfolio, a spokesperson told Reuters. “As part of this process, the bank has decided to start a sale process for the Hotel Savoy,” she told the news organization.
The Swiss bank is set to announce its progress on its strategic review when it reports Q3 results on Oct. 27. In August, Ulrich Körner became CEO, replacing Thomas Gottstein, who served in that role for two years.
In recent years, Credit Suisse (CS) has lost billions from the twin collapses of Archegos Capital and Greensill Capital, incurred litigation charges of over $600M, and was embroiled in a spying scandal.
