© 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 in search of authorities ensures of about $6 billion for a possible takeover of Credit score Suisse Group AG, an individual with information of the discussions advised Reuters on Saturday.
The talks are nonetheless ongoing and the determine may change as a number of eventualities are nonetheless below overview, the individual mentioned.
The ensures would cowl the price of winding down elements of Credit score Suisse and potential litigation prices, the supply mentioned. 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 minimize if the 2 banks mix, the primary supply mentioned.
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 effectively into Sunday, mentioned the individual, who requested to stay nameless due to the sensitivity of the state of affairs. 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 be excited about buying elements of Credit score Suisse, the primary supply mentioned. Nonetheless, any cope with the German lender may take longer, the supply mentioned.
A spokesperson for Deutsche Financial institution (ETR:) declined to remark.
Bloomberg earlier reported the German lender’s curiosity in elements of Credit score Suisse.
“Any potential deal will likely be plagued by complexity, litigation protections being one, with the state of affairs to stay fluid however with readability mandatory earlier than Monday,” Thomas Hallett, a KBW analysts mentioned in a be aware to purchasers on Saturday.