UBS is seeking state guarantees of around 6 billion euros for a possible acquisition of Credit Suisse, a source familiar with the discussions told Reuters tonight.
Negotiations are ongoing and this amount may change as various scenarios are still being considered, according to the same source. The guarantees would cover the cost of liquidating parts of Credit Suisse and potential legal costs, two agency sources said.
The stumbling block in the talks about the acquisition of Credit Suisse by UBS
Talks to resolve Credit Suisse’s confidence crisis ran into major obstacles. Credit Suisse Group AG’s investment banking business is a key point in government-brokered talks about a takeover by UBS Group AG, according to people with knowledge of the matter, according to Bloomberg.
UBS is concerned about balance sheet risk associated with the investment bank, which has suffered a series of losses and scandals in recent years, said the sources, who spoke on condition of anonymity due to the private nature of the talks.
If the two banks merge, 10,000 jobs could be cut, one of the sources said.
Swiss regulators are racing against time to find a solution for Credit Suisse before markets reopen on Monday. However, given the complexity involved in the union of two giants, it is likely that the discussions will continue tomorrow Sunday.
Credit Suisse, UBS and the Swiss government declined to comment on the information.
source: iefi merida
