© Reuters. FILE PHOTO: The headquarters of Swiss banks UBS and Credit score Suisse are seen at Paradeplatz sq. in Zurich, Switzerland March 16, 2023. REUTERS/Denis Balibouse
By Oliver Hirt and Stefania Spezzati
(Reuters) – UBS Group AG (SIX:) is searching for authorities ensures of about $6 billion for a possible takeover of Credit score Suisse Group AG, an individual with data of the discussions informed Reuters on Saturday.
The talks are nonetheless ongoing and the determine might change as a number of eventualities are nonetheless below assessment, the individual stated.
The ensures would cowl the price of winding down components of Credit score Suisse and potential litigation fees, the supply stated. A second individual confirmed this with out specifying the $6 billion determine.
Talks to resolve the disaster of confidence in Credit score Suisse are encountering vital obstacles, and 10,000 jobs might must be reduce if the 2 banks mix, the primary supply stated.
Swiss regulators are racing to current an answer for Credit score Suisse earlier than markets reopen on Monday, however the complexities of mixing two behemoths raises the prospect that talks will final nicely into Sunday, stated the individual, who requested to stay nameless due to the sensitivity of the scenario. Credit score Suisse, UBS and the Swiss authorities declined to remark.
Credit score Suisse was valued on the equal of about $8 billion on the shut on Friday.
Deutsche Financial institution AG (NYSE:) can also be considering buying components of Credit score Suisse, the primary supply stated. Nonetheless, any cope with the German lender might take longer, the supply stated.
A spokesperson for Deutsche Financial institution (ETR:) declined to remark.
Bloomberg earlier reported the German lender’s curiosity in components of Credit score Suisse.
“Any potential deal can be plagued by complexity, litigation protections being one, with the scenario to stay fluid however with readability crucial earlier than Monday,” Thomas Hallett, a KBW analysts stated in a observe to purchasers on Saturday.
