Credit Suisse is not for the sale, says chairman Axel Lehmann

Any bargain hunters hoping to snap up Credit Suisse Group AG now that the lender’s revamp has pushed its stock down yet again may find themselves getting short shrift in Zurich.

“We are going to thrive again, so we don’t have any takeover discussions,” Credit Suisse Chairman Axel Lehmann said in an interview with Bloomberg Television in Hong Kong on Monday. “We want to stay independent.”

With its share price slumping by more than half this year, the 166-year-old institution has been vulnerable to rumors of takeover bids and concerns over its stability. 

Lehmann said the 4 billion Swiss franc ($4 billion) capital increase would make the lender “rock solid,” helping it to carry out a vital restructuring that radically downsizes the loss-making investment bank and shrinks its trading operations. 

“Going forward, Credit Suisse is really a wealth management-centric franchise, centered around entrepreneurs, wealthy clients,” said Lehmann, adding the bank plans to push ahead with growth efforts in key Latin America, Asia Pacific and Middle East markets. “We are a wealth manager, and asset management goes alongside.”

The executive said he’s “highly confident” that Credit Suisse can secure an agreement over the next week in relation to the sale of the majority of a securitised—products trading business to a group led by private equity firm Apollo Global Management.

The bank plans to retain a stream of revenues from the business, Lehmann said.

The bank detailed plans to raise capital through a rights issue and selling shares to investors including Saudi National Bank, which is set to become one of the lender’s top shareholders. To assist with the process, the company announced an enlarged syndicate of banks that includes Wall Street nams such as Goldman Sachs.