The American investment company Harris Associates fell below the 3% mark of shares synonymous with mandatory announcement, according to a statement of participation with the Swiss Stock Exchange.
A former major shareholder of Credit Suisse continues to reduce its stake in the big bank. The American investment company Harris Associates fell below the 3% mark of shares synonymous with mandatory announcement, according to a statement of participation from the Swiss Stock Exchange published on Wednesday.
In the summer of 2022, Harris Associates had calculated its own stake in the big bank just above 10%. The American company owned by the French group Natixis had also supported the major bank’s restructuring plan in October, including savings, a reduction in investment banking activities and a capital increase.
The new reduction in participation is explained by the sale of shares, according to the announcement. In December 2022, Harris Associates explained its reduction in shareholder representation by the capital increase led by Credit Suisse. Harris Associates’ share had then effectively fallen from 6.2% to 3.7%.
For several years, Harris Associates Investment Trust’s share was advertised separately from that of the investment company. But it seems that these shares are managed by the American company for its own investment funds. In December, the stake of Harris Associates Investment Trusts fell following the capital increase of Credit Suisse below the 3% mark.
Gigantic price losses
For nearly 10 years, Harris was a major shareholder of Credit Suisse, and indicated in November 2013 to hold 5% there. David Herro, Harris’ chief investment officer, spoke out on several occasions during successive crises faced by the big bank. In the spring of 2022, he indicated that Harris should have already sold his shares during the governance of former CEO Tidjane Thiam.
The investment company lost feathers in this story. In November 2013, the Credit Suisse share still had a value of around 22 francs. On Tuesday, the stock closed at 3.06 francs.
Since the capital increase, Saudi National Bank has become the new major shareholder of the bank with two veils, with a stake of 9.88%. Qatar Investment Authority (5.03%), the Saudi group Olayan (5.0%) and the investment company Blackrock (4.96%) are also major investors.