BANKING NEWS: INTERNATIONAL
Credit Suisse set to make £60m gains from Alibaba IPO
The initial public offering from expanding Chinese internet group Alibaba will see large profits for Credit Suisse. The Swiss
bank is set to pull in well over $100m (£60m) from the impending stock-market listing of Alibaba, after disclosing a $50m
bond investment it made in 2012.
The Swiss bank is one of six underwriting Alibaba’s initial public offering in New York, but the money it receives in
fees would be doubled by the return from bonds. According to the Financial Times, should Alibaba float at $121bn – a
conservative estimate, according to some analysts – Credit Suisse would earn around $66m in fees and net another $68m
from the investment it made during an earlier funding round.
Founded by chairman Jack Ma in his Guangzhou apartment 15 years ago, Alibaba has expanded from trading portals –
Chinese equivalents of Amazon and eBay – to a network of ecommerce sites. Recently it became the owner of the city’s
championship-winning football team.
Ma now owns 8,9% of the shares, with SoftBank, the Japanese telecoms group, holding 35% and Yahoo holding 22%.
Source: www.theguardian.com
Bank of America could pay $12bn to settle probes
The Bank of America (BAC) could pay more than $12bn to settle probes
by the T