Credit Suisse has lost its spot on one of the most important global share indices.
Credit Suisse is losing its place in the MSCI Global Standard and will be replaced by Helvetia Insurance, effective at the end of the month, according to a review by the index operator. Credit Suisse shares will be included in the MSCI Small Cap Index until they disappear completely when they are exchanged for UBS shares with the completion of the takeover.
Other Movers
Other Swiss bank stocks and companies are affected by the review. Swiss heating maker and building technology company Meier Tobler, is moving up from the Micro Cap index to the MSCI Small Cap Index.
Bellevue, an investment company with a strong focus on healthcare, and Swiss Steel will be listed in the MSCI Micro Cap Index while names including Thurgauer Kantonalbank, Evolva, Fundamenta Real Estate and Valartis will disappear from that index.
SMI Exclusion
Swiss stock exchange operator SIX, will decide on the composition of the Swiss Market Index (SMI) in mid-June, which will go on to take effect in September. Credit Suisse’s plunge in market capitalization since the announced takeover on March 19, has left its shares hovering around the 76 cents mark. Around 12 months ago, they were still worth 7 Swiss francs ($7.8).
Under the terms of the takeover, Credit Suisse shareholders will receive 1 UBS share for 22.48 Credit Suisse shares. This puts Credit Suisse’s value at around 3 billion francs. At 17.27 francs, UBS shares are currently roughly back to where they were at the time of the takeover.
