Market: UBS is targeting a six billion dollar Swiss state guarantee for the takeover of Credit Suisse – source
by Oliver Hirt and Stefania Spezzati
(Reuters) – UBS Group is seeking a guarantee of around six billion dollars (5.6 billion euros) from the Swiss Federal Council for a possible takeover of Credit Suisse Group, an official told Reuters on Saturday. source familiar with the discussions.
Discussions are still ongoing and this amount could be changed as several scenarios are still under consideration, the source said.
The guarantees are to be used to cover the cost of impairment of certain Credit Suisse assets and possible litigation costs, two sources told Reuters.
Talks to resolve the crisis of confidence around Credit Suisse are facing major hurdles and some 10,000 jobs could be at risk if the two banks merge, one of the sources said.
Swiss regulators are keen to present a solution for Credit Suisse’s future before markets reopen on Monday, but the complexity of the two giants’ merger could prolong talks until Sunday, the source added.
Credit Suisse, UBS and the Swiss Federal Council declined to comment.
(With John Revill; French version Claude Chendjou)
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