UBS said it could take until mid-June to finalize government support, according to sources familiar with the matter. There is no consensus yet on the exact terms of government support.
UBS’s Government Support Processes Continue
According to reports, UBS Group AG and the Swiss government could not agree on the exact terms of a government guarantee that could delay the closing of its takeover of Credit Suisse Group AG.
He said the lack of final terms on the 9 billion Swiss franc support (approximately $9.9 billion) for losses that UBS may suffer is a delay that could push it to be completed by June more than expected.
While executives made statements that the deal could be completed by the end of May and some top bankers were told to prepare around June 7, sources said that later date is now also at risk. Uncertainty over the $3 billion takeover, brokered by the government in March to prevent Credit Suisse’s total collapse, hangs over the thousands of employees whose jobs are likely to be affected by the merger.
A spokesperson for the Swiss finance ministry said that negotiations are continuing and there is no deadline for signing the contract.
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