Credit Suisse Sinks on Plan to Raise $4 Billion and Slash Headcount by 9,000
- Shares drop as much as 16% on Saudi-backed capital raise
- Credit Suisse to revive First Boston name for advisory spinoff
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Credit Suisse Group AG opted to tap investors for a painful multibillion-dollar capital raise to shore up confidence and fund a years-long reshaping that will carve out its investment bank and slash its headcount by 9,000.
The stock dropped as much as 16% on the firm’s plans to raise 4 billion francs ($4.1 billion) through a rights issue and selling shares to investors including the Saudi National Bank. It’s effectively breaking up the investment bank, separating the advisory and capital markets unit and selling the majority of a trading business to a group led by Apollo Global Management Inc.