European stocks fell on Monday and shares of Credit Suisse dived more than 60% after UBS agreed to buy the troubled bank in a $3 billion deal, valuing the Swiss lender at just a fraction of its market value and sparking fears of a broader banking crisis.
fell 0.8% by 0807 GMT, after having recorded its biggest weekly decline of the year on Friday.it will pay 3 billion Swiss francs for the 167-year-old bank and assume up to $5.4 billion in losses, in a package orchestrated by Swiss regulators on Sunday.
Investors were also spooked by news that Credit Suisse additional tier-1 bonds - or AT1 bonds - with a notional value of $17 billion will be valued at zero,The wider European banking indexReporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips
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