Credit Suisse investor group seeks better UBS takeover price: Report

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A Swiss proxy adviser representing a former Credit Suisse shareholders has backed a class-action lawsuit seeking a better price from UBS for its takeover of its cross-town rival, it said on Tuesday. Ethos Foundation, which represents a Swiss pension funds that owned more than three per cent of Credit Suisse, "has decided to support the Lausanne-based legal start-up LegalPass in its legal action against the exchange ratio set in the context of the acquisition of Credit Suisse by UBS," it said in a statement.

Under the deal, sealed last month, Credit Suisse shareholders were offered one UBS share for 22.48 Credit Suisse shares, valuing the stricken bank at 3 billion Swiss francs or $3.35 billion. Just 48 hours before deal was struck, Credit Suisse was worth 7 billion francs, Ethos said.

If successful, all Credit Suisse shareholders would benefit from the new exchange ratio, it said. The case is the latest legal battle prompted by the emergency takeover, with holders of Credit Suisse's Additional Tier 1 bonds - which were all written down to zero - also claiming compensation.

A group of Credit Suisse AT1 bondholders has also filed a class action suit accusing former executives at the Swiss bank, including three past CEOs, of being responsible for the bank's downfall. The LegalPass claim comes under the Swiss mergers act which allows for a "verification of the exchange ratio" that enables shareholders to claim "adequate compensation" for their shares, LegalPass said last month.

The aim is to enable shareholders to obtain cash compensation corresponding to the difference in value between the share price determined in the merger contract and the price determined by the court. Ethos has previously raised concerns about how the