Credit Suisse continued to shed positions related to last month’s Archegos Capital blowout with a big after-hours sell-off of shares of media company Discovery Inc and Archegos in the trading session Tuesday, multiple sources said.
A person familiar with the matter said Credit Suisse isn’t done liquidating its Archegos position. Credit Suisse lost $4.7 billion as a result of the Archegos Capital debacle, and its top investment banking and risk unit was replaced.
Discovery and Archegos shares dipped in U.S. after-hours trading on news that Credit Suisse’s sell order offer was lower than the closing price.
According to two market sources, Credit Suisse sold 19 million Class A shares and 22 million Class C shares of Discovery and 35 million U.S.-listed shares of Aiki in the market shortly after the close, with CNBC first reporting the news of the rights offering.
Discovery Class A shares were priced in a range of $38.40-$39.60 and closed at $40.38 during the regular trading session, sources said. Discovery Class A shares were down 3.7 percent in after-hours trading.
Credit Suisse sold Discovery Class C shares in the $32.35-$33.75 price range, closing at $34.78. Class C shares traded down more than 5 percent in after-hours trading.
Lovecraft stock, on the other hand, sold in the $15.85-$16.35 range and closed at $16.66. It traded down 3.4 percent in after-hours trading.
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