(C) Reuters. FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Zurich
(Reuters) – Credit Suisse (SIX:CSGN) put large blocks of shares in media company Discovery (NASDAQ:DISCA) Inc and iQIYI Inc on the market after regular trading ended on Tuesday, multiple sources said, as the bank continued unwinding positions related to last month’s meltdown of Archegos Capital.
Credit Suisse has not yet finished unwinding its Archegos positions, said one source familiar with the matter. The bank has taken a $4.7 billion hit from dealings with Archegos Capital, prompting it to overhaul the leadership of its investment bank and risk divisions.
Shares in Discovery and IQIYI fell in U.S. afterhours trading after news the offers, which were pitched below the stocks’ closing prices.
The bank put 19 million class A shares and 22 million class C shares of Discovery on the market as well as 35 million U.S.-listed shares of iQIYI, a China-based online entertainment company, shortly after the close according to two market sources. CNBC first reported the share offer.
The sources said the pricing range for the offer of Discovery class A shares was $38.40-$39.60 compared with a $40.38 closing price in the regular session. DISCA fell 3.7% in after hours trading.
Credit Suisse offered the Discovery C shares with a $32.35-$33.75 price range compared with its $34.78 closing price. The DISCK C shares fell more than 5% in after hours trading.
It offered the iQIYI shares $15.85-$16.35 after it closed at $16.66, sending that stock down 3.4% in after the bell trading.
A Credit Suisse representative declined to comment.
Credit Suisse offers big blocks of Discovery, iQIYI shares related to Archegos: sources
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