UBS seeks about $6 billion in government guarantees for Credit Suisse deal
UBS Group AG is seeking government guarantees of about $6 billion for a potential takeover of Credit Suisse Group AG, a person with knowledge of the discussions told Reuters on Saturday.
The talks are still ongoing and the figure could change as several scenarios are still under review, the person said.
The guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges, the source said. A second person confirmed this without specifying the $6 billion figure.
Talks to resolve the crisis of confidence in Credit Suisse are encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine, the first source said.
Swiss regulators are racing to present a solution for Credit Suisse before markets reopen on Monday, but the complexities of combining two behemoths raise the prospect that talks will last well into Sunday, said the person, who asked to remain anonymous because of the sensitivity of the situation. Credit Suisse, UBS and the Swiss government declined to comment.
Credit Suisse was valued at the equivalent of about $8 billion at the close on Friday (March 17).
