By Danilo Masoni

MILAN (Reuters – Credit Suisse shares surged sharply in afternoon trading on Wednesday, as traders cited an Inside Paradeplatz report that stated the U.S. is home to a majority of its clients. State Street (NYSE) intends to bid for the takeover of this troubled Swiss bank.

Credit Suisse shares fell almost 8% earlier and are now closer than ever in more 20-years. This was after investors dumping the stock, as the bank warned that it would lose another quarter due to volatile markets.

The shares rose 3% by 1426 GMT after an unexpected jump in response to the Swiss financial blog report. After a disappointing set of results earlier in day, shares rose more than 13% after hitting their lowest point.

In Europe, the stock market overall was 0.6% lower.

Inside Paradeplatz cited one source that said State Street will price its bid at nine Swiss francs per share. That’s more than 30% higher than the closing price on Tuesday. Credit Suisse’s value would rise to 23 billion Francs (23.6 billion USD).

Credit Suisse refused to comment, and State Street didn’t immediately reply to a request for comment.

In a communication to clients, the top U.S. brokerage asked about the logic of State Street interests for Swiss banks. They cited unclear synergies with the U.S. custodian and the risk of litigation, capital costs, job losses, and potential for job cuts.

($1 = 0.9739 Swiss francs)