UBS Group AG UBS is looking at options to take over all or part of Credit Suisse Group AG CS, but he asked the Swiss government's support to cover future risks if it were to buy the bank, according to Bloomberg.
The publication reported that UBS discussed the government's handling of certain legal costs and potential losses in any deal.
In a possible takeover scenario, UBS would acquire Credit Suisse to obtain the latter's wealth and asset management units, while divesting the latter's investment banking division, people familiar with the matter told Bloomberg. Sources said that talks around the fate of Credit Suisse's profitable Swiss universal bank unit are ongoing.
The board of both banks is expected to meet separately over the weekend to discuss a takeover, following the financial crisis faced by Credit Suisse. The Financial Times reported that UBS has a market value of $56.6 billion. Credit Suisse shares closed on Friday with a value of $8 billion. Both banks and regulators are hoping to have a deal by the end of Saturday evening, according to Bloomberg.
Bloomberg reported earlier that UBS executives opposed an arranged combination with Credit Suisse because they wanted to focus on UBS' wealth-centric strategy. They were not willing to take risks related to Credit Suisse. Credit Suisse had previously requested the support of Swiss National Bank after losing 30% of its stock value.
Deutsche Bank AG DB is also monitoring Credit Suisse's situation to acquire certain businesses, according to Bloomberg. The German multinational bank's deliberations are part of a larger effort to assess potential fallout from Credit Suisse's complication.
Credit Suisse released its annual report on financial reporting late in the week, which identified material weaknesses in its internal controls over financial reporting. The bank had $1.3 billion in legal provisions and saw reasonably possible losses of another $1.3 billion at the end of last year. The company has several outstanding lawsuits and regulatory probes, according to Bloomberg.
BlackRock BLK denied the reports that it is considering a bid for Credit Suisse.
CNBC quoted a company spokesman saying that BlackRock is not participating in any plans to acquire all or any part of Credit Suisse.
The Financial Times reported earlier that BlackRock was working on a bid to acquire Swiss bank.
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