Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), has explored seeking redress for losses incurred by Credit Suisse’s takeover by UBS Group AG. The fund sought legal advice on whether it had any claim against Swiss authorities, including through international arbitration. The $475 billion sovereign wealth fund stands to lose roughly $330 million on its equity stake in Credit Suisse as a result of the sale.
Hundreds of lawsuits have been filed over terms of the deal after Credit Suisse’s shareholders and bondholders were left nursing big losses. Should the Qataris decide to move forward, they would have to file a notice of dispute to the Swiss government, according to the treaty signed between the Swiss Federal Council and the government of the State of Qatar. The parties then have six months to settle the claim “amicably”. If no agreement is reached, the dispute can be escalated to the International Centre for Settlement of Investment Disputes (ICSID). QIA’s interest in exploring its options shows how the aftermath of the shotgun merger is likely to play out over many months.